0.5% Cut

poorjim

Thats kind of what I thought. So why are the banks clever and use the extra rate they charge on loans etc to give savers more thus encouraging more people to save with them and allowing them to lend more.

a7man

arcadia00 wrote: »

Typical rubbish that trips off the tongue of touts.

Please explain why this is rubbish as I am going on statistics...and maths doesnt lie.

The fact you had to edit your one sentence shows your IQ level.

a7man

poorjim wrote: »

Hi All

Not sure if this has been asked else in forum but how does the rate cut truly help the economy? Surely if the banks don't match the rate cut then the rate of loan applications won't go up, therefore where does the extra money come from to spend in the economy. Surely all the interest rate cut does is allow the banks to make more profit. . Who knows??? guess we just have to look after ourselves and hope that someone in power knows what they are doing?

ramble I know but if someone can shed some light on the reason why interest rates cuts should help the situation.
pj

People with tracker mortgages have more disposable income to put back into the economy, saving rates are less attractive pushing people into more attractive investments such as company bonds, shares.

Masomnia

a7man wrote: »

Please explain why this is rubbish as I am going on statistics...and maths doesnt lie.

The fact you had to edit your one sentence shows your IQ level.

Perhaps you should edit yours to add the missing apostrophe?