Bank of England interest rates

jacksf

Who is supposed to benefit from further further cuts in Bank of England interest rates when the banks have said they won't pass it on to borrowers.:think:

Farway

Cynical answer is the banks, as they have instantly cut saving rates to match BOE rate cut

Carol2626

If bank of England interest rates go down will that mean more or fewer dollars to the pound

agent_orange_2

Lower the uk interest rates, more pressure on the pound. ie less bucks for your pound.

refusnik

If you want to survive - don't run with the crowd. Lowering interest rates is supposed to punish savers and stimulate them to spend their savings. That actually means to me completely the opposite - "spend even less and save even more."

So the best way to spend any [possible] tax relief is to save it in the bank deposit. This is what is frightening profligate government and they have explicitly said it.

I will keep saving even if inflation will eat into my cash. When interest rates will go back up I will have a lot more capital to take advantage of them. :cool:

Paul_Herring

jacksf wrote: »

Who is supposed to benefit from further further cuts in Bank of England interest rates when the banks have said they won't pass it on to borrowers.:think:

Well considering that the lending rates by banks aren't remotely based on the BoE rate (they never have been, they're baed on LIBOR instead, and until recently LIBOR used to track the BoE rate) I'm not sure exactly what you're expecting?

Aegis

Anyone on a tracker rate will benefit, unless they hit the collar. Also anyone on a discounted or standard rate will benefit if their lender guaranteed to be no more than X% above the base rate.