Interest Rate Cuts... Will it help?

Max_Headroom_3

Snooze wrote: »

:rotfl: :T :rotfl: :T :rotfl: :T

That's the most ridiculous post I've ever read on these forums. :rolleyes:

Rob

Rob, I think Pickles was being ironic... :rolleyes:

Graham_Devon

Well for me, my egg card rate went from 16.9% to 21.9%, got the e-mail yesterday. Savings will be down to around 2.75%, and Halifax are not passing on the cuts. My overdraft rate has gone from 11.8% to 15.9%.

They used to be 2.25% above base rate. But they are now 3.5% above base rate from today as they will only pass on .25% each time, no matter how big the cut.

I'm on an SVR with the collar, the collar they seem to be breaking, but in their favour each time, from 3% down to 2% they passed on 0.25%, last month on the 0.5% cut they passed on 0.25% and i guess this month will be the same. They just keep increasing their margin each time.

Now doubt when it goes up 0.5% they will pass on 0.5%


Also noticed that A&L loans have gone from 5.9% to 8.9% in the last few months.

WTF?_2

LilacPixie wrote: »

Is borrowing really getting cheaper?? It certainly doesn't seem to be.

You've hit on the crux of the problem. Unless you actually control the money supply and distribution system yourself, you can't possibly just set an arbitrary base rate figure that's out of whack with the real world situation and expect that actual borrowing costs will follow it.

Hence talk of nationalising the banks and printing money.

CDes

stephen163 wrote: »

As long as you can keep savings in an account with a greater interest rate than 2% then it should still be better to save rather than repay the loan. I wonder what the best rate is out there for instant access savers after today's cut?..hmmm

I'm not repaying the loan yet I'm actually a student!

My ISA only earns .25% above the student loan rate right now and the rest is in an account .25% below before tax :S

LouBlue

It's great for us, our svr mortgage has gone down £350 a month since November.

Old_Slaphead

Max_Headroom wrote: »

Presumably from the deposits of companies we've spent our cash with. It's got to go somewhere.

So what you're saying is that as long as the money is circulating around then it doesn't matter wher the money is ie saver, borrower, individual, business, government or whoever because for every borrower they'll always be a lender (ie savings and borrowing is a zero sum game).

If that's the case, and scuse my being thick here, why is there a credit crunch?

Pound

I'm no expert at economics but as far as I can see this is having a noticable impact on savers forcing them to cut their spending back even more. But the banks are reluctant to reduce the interest rate of loans or offer any new loans. So I hardly see how it's going to help.

I guess it helps some people with their mortgage depending on if they're on the right type but it's not going to encourage people to go on a shopping spree especially as it's providing more proof that the economy must be failing so we should hold onto our money.

leveller2911

Personally I think its shameful, the government has helped all EXCEPT savers.
As soon as my fixed bonds mature in March Im getting the whole £20k out in cash and putting in a safe place,if I can't get a decent return on my money then the banks aren't either...

ps I kept my savings in this country as I didnt and still don't trust most of the foreign banks..:rolleyes: Oh and one last thing, the cut will NOT encourage people to spend there money the vast majority will save it.End of story:rolleyes:

QUESTION: what would happen if savers withdrew all their cash????

dervish

pickles110564 wrote: »

It is people like you why the country is in such a mess, if you had spend instead of saving we would not be in this recession.

What stupid comment.

The country is in this mess because people SPENT too much money that they didnt have. Hence the CREDIT CRUNCH.

The country needs savers, as we fund the banks, and for many other reasons.

Rochdale_Pioneers

The currency markets apparently liked the rate cut:

Pound vs Euro


Pound vs Dollar