Bank of England - Rates down to 3%

Mr_Matey

The rate cut is not something I'm happy about.

This will hurt the already weak Sterling, meaning imported goods cost more including oil which is priced in USD. More importantly my holidays will also be more expensive.:eek:

As a saver with no debts it does nothing for me except make things more expensive and make it harder for my savings to keep up with inflation.

Investing in shares is a risky business at the moment and I certainly won't be rushing down to the bank to get a "cheap" mortgage anytime soon.

Primrose

We've been screwed on all fronts recently. OH's pension fund took such a big hit recently just as he was about to draw it that he's had to postpone doing so. Equity ISA's have taken a similar dive, and the interest we're currently receiving on cash savings to supplement our income is now going to be abysmal.
So a big "Thank You" to all you greedy and incompetent bankers who've helped bring this country to its knees!

cwcw

Lokolo wrote: »

Current: 5.2%
Next due: 18 Nov '08

Not current. Past: 5.2%. We don't know the current rate of inflation until after the event, which is what I'm trying to say. People saying inflation is currently 5.2% are wrong. It WAS 5.2% at the last count, for the year to end of September presumably.

alchemistkevin

cwcw wrote: »

Not current. Past: 5.2%. We don't know the current rate of inflation until after the event, which is what I'm trying to say. People saying inflation is currently 5.2% are wrong. It WAS 5.2% at the last count, for the year to end of September presumably.

I agree with you on this and some of your previous posts.

I'm probably the only one who was thinking interest rates were raised at the wrong time for wrong reasons, we all could see the prices of houses stagnating and the interest on mortgage rising rapidly but the figures available were always a month old and the rates would be increased again the next month.

This did everyone in I guess. 5 rate rises in a year are unsustainable by but the best placed people (income vs/ expenses).

Inflation was used as an incorrect measure a year and a half ago and I hope the bank learns from it and does what's best for the economy now.

Of course, I save some money and I have been hit hard by the pound crashing against euro/dollar but hey, I'd rather have a job and a small home that's worth 70p than being out on the streets with 0% inflation.

Connie

I agree with you, Mr Matey.
The interest rate cuts only benefit those with debts.
For someone like myself, on the verge of retirement, with no debts, no mortgage, and some savings which were supposed to provide income to top up my small pension, it's not looking good at the moment.
I'm quite sure things will improve in the long term - but probably not soon enough to let me have a worry-free retirement.