BofE Base Rate - October 2008

ChiefGrasscutter

Difficult to say how the Germans' actions affect the situation without knowing exactly what the German have guaranteed or indeed what is the guarantee - is it just retail savings or is it corporate deposits as well and is it a 100% guanrantee.
IF it is all deposits retail and corporate - similar as I understand it to the Irish solution - one can expect a run on the £ as the big (ie corporate) money will start to go to Germany - and an interest rise in the UK would be required to protect the £: unless of course one considers nuclear options such as the imposition of currency controls.
Somehow I can't see such a rise happening or even less likely that currency controls would be imposed (as this would REALLY freeze up the monetary system) and therefore HMG will probably have no option eventually other than to formally guarantee all savings 100% likewise.

The question is whether they are, for once, going to get ahead of the game or continue react to it.
Frankly the amount of "Retail Savings Deposits" is small compared to the amount of corporate/business money floating around/at risk.

The longer term effect of the Irish and German actions on the Euro and for stability/cooperation within the countries of the EU/Euro is an interesting one to watch for the future.

Dan:_4

Sapphire wrote: »

How do you figure you would have 100 quid off your mortgage every month? The moneylenders are not passing on BoE interest rate cuts to the borrowers.

They do for those folk on BoE trackers.

Most will also reduce their SVR.

Gorgeous_George

I wish that I had added a 'down 2%' or more option.

GG

stevetodd

Sapphire wrote: »

How do you figure you would have 100 quid off your mortgage every month? The moneylenders are not passing on BoE interest rate cuts to the borrowers.

I have 5 BOE base rate tracker mortages each 0.25% cut saves me approx £125/month

ad9898_3

Gorgeous_George wrote: »

I wish that I had added a 'down 2%' or more option.

GG

Thats def. not going to happen, .5 at the most, perhaps from now on rates will go up and down when they need to, unlike the last 8 years.

I still can't get my head round how Labour have managed to send the economy into almost certain recession with rates this low in the first place, a staggering achievement of mis-management.

I heard Brown the other day saying ' this crisis that came from America ' and to think this idiot is still at the helm. His head is so far in the sand that the only people he can talk to while his head is in their are house sellers who still have their houses up at 2007 prices

The new buzzphrase is 'preserving stability', can anyone point out to me what kind of stability he is supposed to be preserving because I can't see it.

Heyman_2

Stability of inflation? Er no, that's not it.

Stability of unemployment? No, that's on the rise, it can't be that.

Stability of the Economy? Nope, that's shafted.

Stability of pensions? Ha ha ha ha...

Stability of House prices? See pensions.

Stability of the Stock Market? Errr...

Nope - can't think of what stability he's talking about preserving. Anyone else got any other ideas?

Gorgeous_George

ad9898 wrote: »

I still can't get my head round how Labour have managed to send the economy into almost certain recession with rates this low in the first place, a staggering achievement of mis-management.

So, the UK would have been immune to World events if Maggie was still in charge?

I think the fan would still be receiving it at the same rate but the poor would be poorer and the rich would be richer. You'd be paying 40% on the first £30K and 20% after that (oops, that's not far off the truth already).

GG

Gorgeous_George

I thought I'd check Wiki for stability (clicky)

Economic stability :rotfl:

GG

Ian_Griffiths_Halifax

Heyman wrote: »

Stability of inflation? Er no, that's not it.

Stability of unemployment? No, that's on the rise, it can't be that.

Stability of the Economy? Nope, that's shafted.

Stability of pensions? Ha ha ha ha...

Stability of House prices? See pensions.

Stability of the Stock Market? Errr...

Nope - can't think of what stability he's talking about preserving. Anyone else got any other ideas?

Stability! I bet if he had stabilisers on his bike, he'd still fall off the thing.

kennyboy66_2

ad9898 wrote: »

.

I still can't get my head round how Labour have managed to send the economy into almost certain recession with rates this low in the first place, a staggering achievement of mis-management.
.

Rate are lower in the USA & Eurozone so this is hardly a unique achievement.