B of E Base Rate: 5th February 2009

mower5

Cut

I think they will cut the rate because it helps the overexposed politico's, financial wizzkids and media darlings survive just a few more months. Counting down to the next election, June 2010

RainMaker_2

Cut

They will cut, no doubt about it. Interest rates need to get to zero, and there's no point in delaying what needs to be done. Think this scenario is already priced into sterling.

Thank fack we aren't in the Euro !!!

tradetime

Cut

Lotus-eater wrote: »

To be fair, falling interest rates don't seem to be doing that much either, apart from giving those lucky people on a tracker or a good SVR some extra money, that they aren't spending in the economy, but are hoarding at home in grannys knicker draw*.

* some of them are paying extra off the mortgage, but how many?

Know what you are saying, and largely agree with you, I think very little more can be achieved in real terms by cutting rates from here, rate cutting at this stage is more about perception and sentiment. To be seen to be doing something along the lines of what you are supposed to do in a recession. Most of what will be done from here will be unseen, quantitative easing, we will only really see the effects of that at some point in the future, positive if they get it right, or a nightmare if they get it wrong.

thriftybabe

Cut

Cannot wait to see what interest I will be receiving for my hard earned cash! Mmmm maybe should just start spending as that is what the government want. Then we I make myself redundant, have no money in the bank I can just sign on and get some dosh from the government.

space_rider

Cut

I`m not too bothered now. I`m on a tracker and I have kept my payments the same since the Oct reduction and putting the difference in a savings account that pays 5% as long as it`s left in a year.

fc123

Cut

Posting from a purely selfish point of view....every bit I save from the mortgage interest payments is a positive in my situation.

I would like to big myself up for thinking about the wider economy and my fellow man rather than my own micro life....but today is The Day of Me and Mine.
I have been taking tips from some of my fellow men as some of those types hang out here. All this selfless concern fo our neighbours...!!!!!!??? as PN would say....Pfffttt. Its all ME ME ME from now on.

Bring on massive house price falls...I need 50% off from peak.....and 0% interest rates......for a good 3 years. Then I get to the other side...and then I will be abl;e to afford to be more philanthropic in my outlook.

BTW, I am also stocking up my food cupboard for a personal lock in.

Thrugelmir

Cut

Most certainly a cut in rates with a further cut in March.

Mortgage rates (other than trackers) will change little so as not to affect savers.

A fall in base rate will put further pressure on sterlings exchange rate. Upside of this is that UK banks balance sheets will strengthen as foreign exchange liabilities will reduce and income will correspondingly increase.

Government is hoping that falling rates will stabilise housing market and allow it to fall gradually. (Without telling anyone that it is unlikely to recover in their lifetime).

Expect rates to hit .5% at the bottom. ( General election will be called). Before rates rise back up to 4% to 5% levels in order for the UK to fund budget deficit.

Gorgeous_George

Keep the rate at 1.5%

space_rider wrote: »

I`m not too bothered now. I`m on a tracker and I have kept my payments the same since the Oct reduction and putting the difference in a savings account that pays 5% as long as it`s left in a year.

So, have you kept the payments the same OR do you save the difference at 5%?

I think they'll hold.

GG

leveller2911

Past caring!

I really don't give a monkey's chunky any more. Its like asking me " would you like peas or beans with that".:rolleyes:

Gorgeous_George

Keep the rate at 1.5%

Beans every time.

GG