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another rate cut due next week?

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I just saw someone on TV saying there would probably be another rate cut of 1/2% next week. However I shouldn't think the banks would pass this on to savers by now as I should think deposit interest rates have gone as low as they can really.
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  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Another half percentage cut maybe, but I can't see them taking it that much lower.

    Tracker mortgages are mostly as low as they'll go due to collars, and I can't see banks pasing rate cuts on anyway, as you said. I don't think they'll want to risk too many savers withdrawing too much cash at the moment, and given that I don't think the change will be too radical.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • My personal belief is that the BoE aren't too fussed about the rates being passed on now, as they're keen to get people to spend or invest their savings, thus creating fiscal stimulus, than keep it locked away in a bank 'losing' money (when you consider inflation).

    Just my opinion.
    Doing my best as a contrarian investor...property, banking...let's see how it goes ;)
  • I'm (pig headedly) refusing to compare my interest rate to inflation, as then yes, most likely losing money.

    As I'm looking to buy a house soon I'm comparing to house deflation, which means I'm quids in!!
  • gozomark
    gozomark Posts: 2,069 Forumite
    what inflation ? - its been deflation for the last 4 months, on a month-on-month basis
  • Just read an article about another cut as much as 1%. I am a keen saver like most of you that don't try and not get into debt but we get penalized for saving a bit of extra cash.

    Quids in for the people that want to get into debt and another sledgehammer hit against us savers (makes me sick).
  • LesU
    LesU Posts: 338 Forumite
    gozomark wrote: »
    what inflation ? - its been deflation for the last 4 months, on a month-on-month basis
    It depends how you view inflation.
    RPI - Sep 5%, Oct 4.2%, Nov 3% ,Dec 0.9%
    What that tells me is in the last 4 months prices have risen more than they were a year ago, but that rise is decreasing. But prices in December were still 0.9% higher than a year ago.
    What if you don't have a mortgage?
    RPIX - Sep 5.5%, Oct 4.7%, Nov 3.9%, Dec 2.8%

    So, if you don't have a significant mortgage, prices are 2.8% higher than 12 months ago.

    There was an interesting article on TV tonight about council tax rises. Even if your announced tax rise is low (in our case only 1.9%) don't think that that will lower inflation.
    Councils are planning on clawing more back in increased parking charges, fees for services, increased fines etc etc.
  • nilrem_2
    nilrem_2 Posts: 2,188 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    LesU wrote: »
    It depends how you view inflation.
    RPI - Sep 5%, Oct 4.2%, Nov 3% ,Dec 0.9%
    What that tells me is in the last 4 months prices have risen more than they were a year ago, but that rise is decreasing. But prices in December were still 0.9% higher than a year ago.
    What if you don't have a mortgage?
    RPIX - Sep 5.5%, Oct 4.7%, Nov 3.9%, Dec 2.8%

    So, if you don't have a significant mortgage, prices are 2.8% higher than 12 months ago.

    There was an interesting article on TV tonight about council tax rises. Even if your announced tax rise is low (in our case only 1.9%) don't think that that will lower inflation.
    Councils are planning on clawing more back in increased parking charges, fees for services, increased fines etc etc.

    Quite agree, people keep 'harping on' about how lucky we savers are because inflation is low but I don't see much decrease in price of the essential things in life such as Electricity, water rates, council tax and food!
    Some stuff especially 'hi tech' equipment may be decreasing in price but we don't buy this stuff that often and it's all added into the figures to show low inflation.
  • well i am sick of the intrest rates for savers
    just looked at my isa and i have saved £2,500 in the last year
    for that amount the bank are giving me £2.11 per month intrest- where as in september they were giving me £7.45p.
    i would be better off asking family if they wanted to borrow two and a half grand for two pound five a month... lol
    credit card bill. £0.00
    overdraft £0.00
    Help from the state £0.00
  • rb10
    rb10 Posts: 6,334 Forumite
    You would be best off switching to another account. You are getting about 1% interest at the moment, you can definitely get higher rates, even if you want instant access to it.
  • gozomark
    gozomark Posts: 2,069 Forumite
    LesU wrote: »
    It depends how you view inflation.
    RPI - Sep 5%, Oct 4.2%, Nov 3% ,Dec 0.9%
    What that tells me is in the last 4 months prices have risen more than they were a year ago, but that rise is decreasing. But prices in December were still 0.9% higher than a year ago.
    What if you don't have a mortgage?
    RPIX - Sep 5.5%, Oct 4.7%, Nov 3.9%, Dec 2.8%

    So, if you don't have a significant mortgage, prices are 2.8% higher than 12 months ago.

    There was an interesting article on TV tonight about council tax rises. Even if your announced tax rise is low (in our case only 1.9%) don't think that that will lower inflation.
    Councils are planning on clawing more back in increased parking charges, fees for services, increased fines etc etc.

    base rate is set on expected not historic inflation - RPI is likely to be -2% by the Summer. CPI is likely to be 0%.
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