Bank of England - Rates down to 3%

ScarletBea

alchemistkevin wrote: »

I think this is a good decision. A very good and a very bold decision.

If this can't bring the economy out of recession nothing can.

All of us are holding on our car purchases, house purchases and that's only driving the economy down.

This will get us to spend our money which is the No. 1 priority right now.

Excuse me, but where are you getting the money to buy your cars, houses and other big things, if you'll be getting next to nothing on your savings and food prices keep going up?
Do you really believe that your mortgage rates will go down in the same proportion?
Really......

ought

!!!!!!. This is not good for those of us saving for our deposits.

Where can I put money with a fixed interest rate that will allow me to take the money out in 8 months should I want to buy a house?

Bonds are not a great solution....

Lokolo

This is crap news. I am hoping things go opposite by March time so inflation is at a rock bottom low so my student loan is like 1%... lol

Stavros_3

ScarletBea wrote: »

Excuse me, but where are you getting the money to buy your cars, houses and other big things, if you'll be getting next to nothing on your savings and food prices keep going up?
Do you really believe that your mortgage rates will go down in the same proportion?
Really......

Excellent point. salaries are being capped well below inflation. OK this is good news for borrowers IF the banks pass on the rates in full, which Nat West have just announced they will do, that will put pressure on the other lenders. As someone who has finally paid off my mortgage, this is an absolute disaster for me personally as I was enjoying a reasonably good savings rate.
THANK-YOU AMERICA FOR THIS MESS

[Deleted User]

This is NOT a glass-raising matter for anyone. The country is in deep trouble and after this whopping cut there is not much else can be done. Jobs are are at great risk

http://news.bbc.co.uk/1/hi/business/7713006.stm

Lokolo

kittie wrote: »

This is NOT a glass-raising matter for anyone. The country is in deep trouble and after this whopping cut there is not much else can be done. Jobs are are at great risk

http://news.bbc.co.uk/1/hi/business/7713006.stm

You say that but the cut will mean people will ease up and hopefully start borrowing and get money moving around again. If theres more money moving around then business's will start to improve. But obviously this is based on a lot of hopefullys!

Fella

Stavros wrote: »

THANK-YOU AMERICA FOR THIS MESS

Don't fall into the trap of falling for Brown's propaganda. This is every bit as much a UK mess as it is a US one. He's hoping if he repeats this line often enough it will become accepted truth.

His lies are like those of a child. Transparent & laughable.

10 years of smugly claiming sole responsibility for the "healthy" economy. And now that the chickens of his dreadful chancellorship have come home to roost - simply blame the yanks & hope that if you say it often enough (& of course instruct ever labour spokesperson to do so too) eventually people might actually believe it.

Transalper

I have sent a cheque to the Julian Hodge bank fixed Millennium bond. I heard the news of the drop in rates so telephoned.They say if they get applications by Tues they will honour the old rate. I don't know how many other banks will drop the savings rates and how soon.

pawpurrs

ought wrote: »

!!!!!!. This is not good for those of us saving for our deposits.

Where can I put money with a fixed interest rate that will allow me to take the money out in 8 months should I want to buy a house?

Bonds are not a great solution....

Would like to know the best advice for this too. Anyone?

evenasus

Originally Posted by alchemistkevin
This will get us to spend our money which is the No. 1 priority right now.

It will certainly not make me spend.

It may encourage the people who spent money they didn't have (who contributed greatly to the current situation) to spend even more.