Interest Rate Cuts... Will it help?

mewbie_2

Six months is a long time in economics. Seems a short while since we used to spend two weeks every month building up to the big day, holding polls and minutely examining every possiblity of a hold or a .25% move - in either direction. Then a further two weeks of determining what difference the hold or .25% would have on the [strike]scum of the earth [/strike]BTL landlords.

Now a .5% cut and no one gives a !!!!!!. I know it affects savers and so on, but in terms of the bigger picture it's like throwing a drowning man.. um... something smaller than a lifebelt to keep him afloat but at the same time faintly humourous, oh I don't know, a plastic duck maybe.

ixwood

http://www.moneyweek.com/news-and-charts/economics/why-cutting-interest-rates-now-would-be-a-mistake-14605.aspx

Cannon_Fodder

Max_Headroom wrote: »

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

The companies need to repay their debt, assuming they can get the credit...

Before you say they don't need credit, why is there such a problem being caused by the crunch...?

The banks will take what we spend off the companies and keep it to maintain their solvency and/or to repay the Govt bailouts...

chucky

http://www.guardian.co.uk/business/2009/feb/05/interestrates-recession

Ian McCafferty, chief economic adviser at the Confederation of British Industry
"This drop in rates should support business confidence and, when added to recent cuts of the past couple of months and the fall in the pound, provides a very significant stimulus to the ailing economy."

Really2

ixwood wrote: »

http://www.moneyweek.com/news-and-charts/economics/why-cutting-interest-rates-now-would-be-a-mistake-14605.aspx

Good job jurnos are jurnos.

That bit about it weakening the £ the money markets liked it and the £ shot up.

The money markets like to know we are acknowladging our situation and are taking action.

Look what they did in europe today. That went down like a lead ballon.

Cannon_Fodder

"the government now needs to move swiftly to ensure that the other weapons in its armoury are in place to fight the recession."


They've seen this recession coming since the 2nd Qtr 2008, which was 0%, so why are we still waiting for the ammo to be supplied...?


C'mon Corporal Jones, get your bayonet out, they won't like it up 'em...

Kenny4315

mewbie wrote: »

on the [strike]scum of the earth [/strike]BTL landlords.

BTL LANDLORDS RULE

Well some do, especially me.

purch

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.

Thats true, and no doubt it is frustrating Brown that he cannot control everything.

Whatever he does, he cannot control the velocity of the money in the system............we still have personal choice.