BofE Base Rate - October 2008

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Gorgeous_George wrote: »

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

Well I never mentioned Maggie, however if the economy had been managed better we would have been better placed to weather the storm***:D






*** don't sue me for copyright infringement Gordon:D

sabretoothtigger

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

If somehow whoever was in charge had forseen the rules on bank lending were too lax then yes we'd be alot better off. We'd be like santandar, on a spending spree reaping the benefits of others downfall. Sure they are our trading partners but we failed to limit our losses instead we share theirs

michaels

Earlier I went for a 50 basis points cut - can I increase that to 100?

Not that it will bring down libor or lending rates. Have the monetary authorities ever lost control of interest rates before?

WTF?_2

michaels wrote: »

Earlier I went for a 50 basis points cut - can I increase that to 100?

Not that it will bring down libor or lending rates. Have the monetary authorities ever lost control of interest rates before?

They lost control about a year ago and haven't regained it since. Cutting base rates won't help anyone except the banks, but as that's the whole point of the exercise it doesn't matter.

(OK, holders of tracker mortgages where the tracker is locked with the official BoE rate will benefit too)

Dan:_4

I would like to revise my vote to a big fat 1% cut.

speedbird1973

As well as oil prices tumbling, food prices have in the last few weeks too. Grain and wheat are much less expensive, all of this will reduce inflation and if fuel prices reduce, the food transport costs will fall too. As the backbone of CPI inflation rises at the moment is food, oil and energy then we can expect inflation to fall without incresing interest rates. Wage increases are subdued too

When oil prices rise energy companies hike their prices, we may even see these start to fall. Although energy companies makes their fuel counterparts look positively philanthropic!

I go 0.25 or 0.5 % fall! I also have a BoE tracker so I'm hoping for a 4% fall!

WTF?_2

speedbird1973 wrote: »

As well as oil prices tumbling, food prices have in the last few weeks too. Grain and wheat are much less expensive, all of this will reduce inflation and if fuel prices reduce, the food transport costs will fall too. As the backbone of CPI inflation rises at the moment is food, oil and energy then we can expect inflation to fall without incresing interest rates. Wage increases are subdued too

When oil prices rise energy companies hike their prices, we may even see these start to fall. Although energy companies makes their fuel counterparts look positively philanthropic!

I go 0.25 or 0.5 % fall! I also have a BoE tracker so I'm hoping for a 4% fall!

Remember that rate cuts will hurt the pound and thus put upward pressure on CPI.

We've 'benefited' from imported deflation on consumer goods keeping the CPI down so now we'll be seeing things swing the other day.

mr_magoo_5

Well it looks like a global, co-ordinated ,biggish, cut is on the cards,

so that means one thing to me,

were all going down together

sabretoothtigger

I read that australia cut its rate by 1% on the understanding that other national banks would do the same

Separately, the Reserve Bank of India cut the cash reserve ratio (CRR) for banks by half a percentage point to 8.5 per cent to relieve pressures caused by the global financial crisis.

adr0ck

1 - 2 % cut