Will interest rates be cut still further in the UK?

Really2

Gorgeous_George wrote: »

I think Britannia had a better rate than +0.74% but not with the offset account which was important to me. With rates so low, the offset ain't as valuable.

GG

It is if you pay into it like a nutter as a safe place for your savings and if and when rates go up you will be a happy bunny. I could be more MSE and put my cash in a seperate investment but it is safe in the offset.

zarazara

USA has just reduced its interest rate to 0.25%

Generali

free4440273 wrote: »

^which is what the Fed is doing (printing money), although they deny it.

Well the Fed clearly isn't steralizing its bond sales which means it is printing money. They say that they are going to sell bonds to cover the new money produced and they have to do so to remain credible.

WTF?_2

Generali wrote: »

Well the Fed clearly isn't steralizing its bond sales which means it is printing money. They say that they are going to sell bonds to cover the new money produced and they have to do so to remain credible.

The US gets to play more fast and loose than the rest of the world because of the status of the dollar as global reserve currency and petro currency. Never mind the huge amount of Dollar denominated debt that China holds. It's in no-ones interest to see the dollar collapse totally and there are plenty of vested interests who will act to hold it to some sort of base level.

However, there's only so far they can push it before there are (serious) consequences.

The UK couldn't get away with nearly as much of course.

Generali

!!!!!!? wrote: »

The US gets to play more fast and loose than the rest of the world because of the status of the dollar as global reserve currency and petro currency. Never mind the huge amount of Dollar denominated debt that China holds. It's in no-ones interest to see the dollar collapse totally and there are plenty of vested interests who will act to hold it to some sort of base level.

However, there's only so far they can push it before there are (serious) consequences.

The UK couldn't get away with nearly as much of course.

If there isn't an impact felt on the dollar as far as the lack of sterilization goes there certainly will be on the price the Americans are paying for their debt.

IIRC, the debt will cost each US tax payer $4,000 in interest next year so the cost of servicing it is important.

sabretoothtigger

Yep the idea of issuing bonds is a depreciating return I think thanks to compound interest

mr.broderick

I still feel it is better to buy now and negotiate a good deal and take advantage of lower interest rates. Pointless having £30k in the bank and renting believe me it is not good financial sense. Your money is eroding as i type.

neverdespairgirl

mr.broderick wrote: »

I still feel it is better to buy now and negotiate a good deal and take advantage of lower interest rates. Pointless having £30k in the bank and renting believe me it is not good financial sense. Your money is eroding as i type.

Why is money eroding?

Our savings are, according to OH, getting an average of 7.1% at the moment.

mr.broderick

neverdespairgirl wrote: »

Why is money eroding?

Our savings are, according to OH, getting an average of 7.1% at the moment.

Do i really need to explain this to you of all people, one of my heroes.

ManAtHome

If the largest consumer economy on the planet is up !!!!!! creek, taking on more debt may not be the most sensible move at the moment. Or maybe the Chinese will wave the magic money stick and start hoovering up all the stuff we (want to) export..? (thought not).