Bank of England - Rates down to 3%

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nilrem wrote: »

Whenever the interest rate is reduced it is hailed by the media as the 'second coming' they never give a moments thought to people who have scrimped and saved all their lives and depend on the interest they receive, these are often Elderly people who depend on a state pension or someone who retires early for one reason or another.

I am getting to think that savers would be more respected if we just lived beyond our means and borrowed more than we could ever afford or depended on the state for handouts!:mad:

It all "feelgood " factor engineered by Mr prudence Brown! -I just heard our local radio news and soem guy from the local chamber of commerce saying this is great news in that mortgage rates will be lower and therfore people will have more money now to spend in the High Street therfore keepinh jobs -what utter rubbish -most manufactured goods are imported these days.
Whatever this will only lead to more debt -the interest rates needed to be increased and yes Nilrem I agree it hurts people whom have saved.
the banks will not help businesses etc with this low rate .
what a mess we are in and tbh this the boom and bust mess made by one G Brown and who wants to be Mr nice guy -have you noted the Glenrothes by election has beinhg hidden by all thr news being about Obama another clever tactic by GB.

nilrem_2

Anyone who wishes to ring fence their savings for 6 months +: nationwide are only keeping their fixed rate ebonds at 6+% open till 5 pm today!

I imagine that quite a few of us a 'feeling' a 'double whammy' at the moment having had a fraught 4 weeks with Icesave and now today's cut, many of us have just lost quite a bit of interest and are now in the frustrating position of being advised to fix our cash before rates are slashed (next few days) but of course can not get at our cash!

It is all very depressing.:o

nilrem_2

alchemistkevin wrote: »

No one who is 'dependent' on their savings for their savings to survive have their savings in current/regular savings accounts. It's usually fixed with fixed returns.

The problem is that many of us do fix our savings but we have been 'stuffed' with Icesave and cannot fix our cash at the moment and it's just locked away not earning anything.

I get your point but I guess you're getting very dramatic in portraying what you want to say.

TBH I don't think I was being dramatic, a lot of people do depend on savings interest and have very little other income.

and not to look at how much interest I'll be losing on my savings (or you on yours)

I can't speak for others here and I don't wish to burden people with my circumstances but I do have to consider how much interest I receive on my savings because at the moment and for the next few years it is our only source of income.

I do of course understand that there are people in a lot worse situation than we are but it does not prevent me from being concerned at my own situation.

aardvaak

Mithos wrote: »

When rates are high people have a tendency to horde money rather than spend. Surely in a capitalist society the idea is that people spend their savings now the rates are so low, which in effect becomes the "new" money to push banks/BS and other types of businesses up again?

Soon house prices will start to look like bargains and past savers will start to buy up property, either directly or through investment accounts.

What we had before was simply not sustainable over the long term, first time buyers were forced off the chain and here we are.

I agree house prices had gone too high and even the govenment said that - only thing is now they have listened to the whingers and decided to cut the rates to increase house prices.

ray123

It shows how bad our economy is in if the base rate has been dropped by 1.5% today...
That me make a bold prediction (well it is more obvious than bold), savings rates will drop and mortgate rates for new borrowers will remain the same...

ffacoffipawb

Fella wrote: »

Yep, don't it make u laff how when inflation was low - i.e. 2% - they had to keep interest rates low "to keep inflation near the target".

Now that inflation is 5% & it's obvious to everyone they should be INCREASING rates - they cut them instead because otherwise inflation will be too low IN FUTURE.

lolol.

Funny how they couldn't give a t0ss about that several years ago, when they should clearly have been raising rates.

Let no-one be under any missasumption. They kept rates low to prolong the house boom & now they're frantically cutting them in a desparate attempt to avoid the bust that inevitably follows.

Foul, disgusting maneouvers from Gordon's puppet MPC. Anything to get him elected (I would say re-elected but of course no-one's ever actually voted for him).

ffacoffipawb would love to be able to say ffacoffigordonbrown.

Bisoy

As far as I am concerned it's not good news for all savers. With the recent down turn in economy we tried to live within our means and cut unnecessary spending.

Although this move by the government will hope to encourage people to spend and encourage borrowing, this would no longer change my spending habits. In fact I would continue to be more sensible, earned more and spend less.

sirhobo

mean_momma wrote: »

Anyone who wishes to ring fence their savings for 6 months +: nationwide are only keeping their fixed rate ebonds at 6+% open till 5 pm today!

I seem to still be able to activate an e-bond from my flexaccount now...yep just opened one at the high 6+% rates

also a chap in Britannia told me this afternoon that he thinks its 6.10% fixed rate cash isa will still be available until next week...of course he couldn't guarantee it

GooeyBlob

Pretty grim news, and the BBC news coverage is the usual subjective froth approaching the story solely from a borrower's perspective - we savers outnumber them 6 to 1. Perhaps I should make a complaint.

Anyway, I shall be moving my savings around following this move, and probably withdrawing large sums from banks and building societies to invest elsewhere. With the interest rate cut I'd expect Sterling to fall, so now looks like a good time to buy next year's holiday money.

fullstop

GooeyBlob wrote: »

Pretty grim news, and the BBC news coverage is the usual subjective froth approaching the story solely from a borrower's perspective - we savers outnumber them 6 to 1. Perhaps I should make a complaint.

Anyway, I shall be moving my savings around following this move, and probably withdrawing large sums from banks and building societies to invest elsewhere. With the interest rate cut I'd expect Sterling to fall, so now looks like a good time to buy next year's holiday money.

There was a chap on Working Lunch from a travel firm who was hoping that rates would not go down as holidays are paid for in advance and he will loose money on deposit.