BoE cuts rates to 3.0%!!!

StevieJ

!!!!!!? wrote: »

I'm not into speculation and I'm not convinced that the market has turned bull again so no quick decisions.

I'll wait a month and see how things play out before deciding if it makes sense to keep playing the waiting game with my cash or to move it into something, such as property.

I have however decided that if savings rates go down below 2% I will take all of my sterling savings out as physical cash and stuff them into a safety deposit box rather than let some bank make money off their back and pay me next to no interest......

I have just fell off my chair in shock (you slipped that in), this is a massive inflection point. :T :beer:

Really2

kennyboy66 wrote: »

Cutting your nose to spite your face comes to mind.
Would you really do this ?

Quote:
Originally Posted by !!!!!!?

I have however decided that if savings rates go down below 2% I will take all of my sterling savings out as physical cash and stuff them into a safety deposit box rather than let some bank make money off their back and pay me next to no interest......


Me too in reverse. I am going to pay my mortgage off as fast as possible to stop saver making money off my debt.
Bloody savers.:rotfl:

WTF?_2

kennyboy66 wrote: »

Cutting your nose to spite your face comes to mind.
Would you really do this ?

Yup. 2% rates would yield an effective 1.2% income on the savings for me.

That doesn't compensate me for the level of risk of leaving it a banking system which not so long ago looked like it might implode before the recession actually even kicked in.

carolt

Really2 wrote: »

Carrol lots of us did.
I remember the last cut as I was off ill and they said 2.5M would see the full cut on trackers so I presume 2.5 Million are BOE trackers.

Yes, but that doesn't tell me what percentage are on trackers, which I believe (can't be bothered to chck) was my original question.

2.5 million might be a lot - or it might be a tiny drop in the ocean.

No idea.

WTF?_2

:T :beer:

StevieJ wrote: »

I have just fell off my chair in shock (you slipped that in), this is a massive inflection point.

I'm not attached to any particular philosophy and will do what I feel best to preserve my savings.

Given that they will mostly end up being tied up in property anyway, if it looks like the economy is going to go cuckoo (and the BoE lopping rates by a third in what is obviously a panicked move is a strong signal of that) then I've got no bones about shifting the cash into an expensive physical asset that I can also live in to preserve my wealth.

Obviously, I'll want to take stock of what effect these moves have first though.

Really2

carolt wrote: »

Yes, but that doesn't tell me what percentage are on trackers, which I believe (can't be bothered to chck) was my original question.

2.5 million might be a lot - or it might be a tiny drop in the ocean.

No idea.

11.5 Million mortgages so 2.5 million = 21% of all mortgages just over 1 in 5.

StevieJ

!!!!!!? wrote: »

:T :beer:

I'm not attached to any particular philosophy and will do what I feel best to preserve my savings.

Given that they will mostly end up being tied up in property anyway, if it looks like the economy is going to go cuckoo (and the BoE lopping rates by a third in what is obviously a panicked move is a strong signal of that) then I've got no bones about shifting the cash into an expensive physical asset that I can also live in to preserve my wealth.

Obviously, I'll want to take stock of what effect these moves have first though.

Good on you, they will be rising again in the spring, you could have given us a bit of a warning.

chucky

StevieJ wrote: »

Good on you, they will be rising again in the spring, you could have given us a bit of a warning.

definitely going to ask !!!!!! for a warning before rates will be going up again - but rates will not be moving anywhere upwards until Gordon has a go at a General Election.

rumbaba

Well it certainly is good news for homeowners, and no doubt people will start buying again - and properties will once again start to rise.

What concerns me though are my savings. Does anyone have any suggestions? We were thinking of investing in property abroad but now might be a good time to invest in a holiday home in the UK.

purch

I'd put money on bond rates and hence annuities falling in the short term

The Longer end of the Gilt curve is 40/50 basis points lower today :eek:

Hope you didn't put too much money on............;)