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0% interest rate is it possible!
nilrem_2
Posts: 2,188 Forumite
Story in This is money.com http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=456296&in_page_id=7 is this just Daily Mail spin or could it happen.
If it did what would savers do especially people who live off interest on savings?
If it did what would savers do especially people who live off interest on savings?
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Comments
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Story in This is money.com http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=456296&in_page_id=7 is this just Daily Mail spin or could it happen.
If it did what would savers do especially people who live off interest on savings?
They'd need to invest in a non-cash asset to get any real return. This is one of the ways that the markets are stimulated by reducing interest rates.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
The Japs sent their money abroad.0
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Suppose it's possible if the BoE gets the printing presses rolling - would suspect that offering govt bonds for sale at 0% or less wouldn't start a stampede...0
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The Japs sent their money abroad.
Some of it to Iceland
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3267504/Kaupthing-becomes-first-European-borrower-to-default-on-samurai-bond-financial-crisis.html0 -
If interest rates are 0% what will the inflation rate be ?0
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High-yielding currencies are always going to come under consideration. I believe New Zealand was another favourite home for all that Yen.0 -
Point to note: ThisIsMoney is part of the DMGT.
DM in that acronym stands for the Daily Mail.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Story in This is money.com http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=456296&in_page_id=7 is this just Daily Mail spin or could it happen.
If it did what would savers do especially people who live off interest on savings?
They would live off the capital, which is exactly what they always used to do as inflation
eroded their capital. For example this year their capital will be worth 5% less in purchasing power, or 30% less if you are on a low income.0 -
Always worth remembering!Paul_Herring wrote: »DM in that acronym stands for the Daily Mail.
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Only until the capital runs out, up to now it has been possible with a decent sized sum to keep the capital from eroding by using the interest, with little or even zero interest the capital will soon start being eroded so that even if the rates pick up ones 'nest egg' is then too low.They would live off the capital,0
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