What will the BOE rate be set at this month?

StevieJ

lethal0r wrote: »

i think most people are saying 0.5% without even thinking about it, that because of all the recent frequent large drops it is a matter of course. but if the government was planning to drop to 0.5%, then why didnt they just do it last month? they dont get to learn much about any changes in the economy in a single month.

my view is no drop, but i'll cheat and also offer a maximum of a 0.25% drop.

I agree, I don't think a drop is a cert, they may just move straight on to QE.

mewbie_2

StevieJ wrote: »

I agree, I don't think a drop is a cert, they may just move straight on to QE.

Thank goodness for that. Each time they change it I have to calculate the effect on my fifty year mortgage, and since my calculator went wrong it takes for ever.

MrFonzerelli

I'm not getting excited until the base rate goes negative and the banks start paying me for my financial imprudence. :rolleyes:

mewbie_2

MrFonzerelli wrote: »

I'm not getting excited until the base rate goes negative and the banks start paying me for my financial imprudence. :rolleyes:

To be fair we've so far been paying them. Must be our turn soon.

Thrugelmir

StevieJ wrote: »

I agree, I don't think a drop is a cert, they may just move straight on to QE.

My thinking too. The previous cuts have had little time to make a real impact on the economy. Except for reducing mortgage repayments , which in the main isn't being spent but used to repay debt.

A number of highly geared companies are now looking to cut dividends and reduce capital expenditure and have rights issues to deleverage their balance sheets. So the cost of borrowing to them is not so much of an issue.

Savers are now withdrawing funds from banks and building societies which will just have the effect of reducing the amount available to lend.

I forecast at least 2 months without a change in base rate so that there still some ammo left in the gun should the need arise later.

ad9898_3

pickles110564 wrote: »

What will Broon get the BOE to set their base rate at this month?

It's going to be 0.5%, I think it's a gimme, then Darling gives the order to print £100 billion I believe, it is obviously an insane thing to do, I mean what did Brown/Darling do ??, look at Japan and say 'well it worked there':cool:, and 'look look, Zimbabwe is an economic powerhouse':rolleyes:, in fact I'd like to see any example where this has proven to be a good thing.

1984ReturnsForReal_2

Martinslovechild wrote: »

If I didn't have an eye on finance, I'd probably have said 17.0% judging by the recent increases on my Egg Card.

Yes, increases. Anybody would think we'd been hit by an inflationary tsunami recently. After all, it wasn't long ago that they were charging me just 6.9% on the same card!!.

Anyway, I agree with nearly everybody else here (apart from the poster who thinks that Bank Rate is currently 1.5%!!) that Bank Rate will likely be reduced to 0.5% tomorrow.

Try getting a quote for a loan from them online....

The APR will be higher than the APR on your card!

I would laugh :rotfl: but its not really a joke for thousands of people!! :eek:

tomterm8

I think the drop SHOULD be 0.75%, but the actual drop will be 0.25% .

I'm deeply scared that people will actually take out debts at this level, that would be a disaster. If a trend can't continue forever, it won't.

1984ReturnsForReal_2

tomterm8 wrote: »

I think the drop SHOULD be 0.75%, but the actual drop will be 0.25% .

I'm deeply scared that people will actually take out debts at this level, that would be a disaster. If a trend can't continue forever, it won't.

Agreed. Down to 0.75%.

If people tax our fixed rate debt its all good...

StevieJ

ad9898 wrote: »

It's going to be 0.5%, I think it's a gimme, then Darling gives the order to print £100 billion I believe, it is obviously an insane thing to do, I mean what did Brown/Darling do ??, look at Japan and say 'well it worked there':cool:, and 'look look, Zimbabwe is an economic powerhouse':rolleyes:, in fact I'd like to see any example where this has proven to be a good thing.[/quote]

Article from 2001, I have linked to it before, seems appropriate here :cool:

http://www.capmag.com/article.asp?ID=1021
After all, truth be told, they got the idea of quantitative easing from us! We used it right here in the US of A in August, 1982 when Fed chairman Paul Volcker printed billions to buy peso-denominated bonds to bail out US banks from the Mexican debt default crisis. That ended a deflation as severe as the one we're facing now, and -- in hindsight -- can be seen as the shot of the starter's pistol that set off the great bull market of the 1980s and 1990s.
It worked then, and it will work now. In Japan, and here in America.