New Bank Rate Today ?

belleooo

Milarky wrote: »

Don't forget that they're almost a 'government bank' these days..

The amount of damage this government as done/ is doing is unbelievable.

Liloly

Brooza, that rate of 0.16% reflects LAST month's cut. Expect it to be cut to 0.01% or maybe 0% from 1st April.

Regarding todays base rate cut, in the minutes of last month's meeting it said they did'nt want to take it to 0.5 as it would affect the lender's margins too much and inhibit mortgage lending therby doing more harm than good. (Of course Blanchflower was the sole voice who voted for a full 1% cut that time). What makes me angry is if that argument applied 4 weeks ago it still applies today.

Only consolation must be that at next month's meeting we don't have a cut.
(Then again nothing would surprise me now).

nrsql

They're trying to get money moving again.
Why would people or businesses borrow or spend at the moment?
People won't because they're concerned about their jobs - until that's settled they will try to reduce debt not increase it (apart from the odd madmen).
Businesses aren't going to try and expand because they need a market.

Doesn't amtter how cheap borrowing is or how much mortgage payments are reduced by nothing is going to move until everyone feels confident that things are more stable.
The government taking the country further into debt, reducing interest rates to near zero and dumping money into0 whatever they can isn't going to help.

What will help - doing somethiong about it at least 3 years ago. Now, I don't know. Maybe public spending to get more people into work. Companies employing people at a low wage to produce competitive goods, ...
Forget about short term fixes - I think we're talking about at least 5 years and the more hardship that is gone through now probably the quicker the recovery will be - lot of bankruptcies and reposessions is inevitable so do it now.

brooza

Liloly wrote: »

Brooza, that rate of 0.16% reflects LAST month's cut. Expect it to be cut to 0.01% or maybe 0% from 1st April.

Regarding todays base rate cut, in the minutes of last month's meeting it said they did'nt want to take it to 0.5 as it would affect the lender's margins too much and inhibit mortgage lending therby doing more harm than good. (Of course Blanchflower was the sole voice who voted for a full 1% cut that time). What makes me angry is if that argument applied 4 weeks ago it still applies today.

Only consolation must be that at next month's meeting we don't have a cut.
(Then again nothing would surprise me now).

It was 0.66% yesterday when I last looked.

I opened up an Egg savings account a couple of days ago anyway for the 3.3% rate on that.

ian-d

It's not an easy situation for the government, but come on, lending and spending comes from savers putting money into the banks; if the banks won't offer a reasonable rate of return then savers will look elsewhere, therefore less money in the pot for the banks to lend!

All stems from the places that aren't being punished for greed, banks, and manufacturing abroad, plus the open door policy to allowing foreign nationals to work/live in our country.

Fortunately for me I have a way out planned for in a few years and intend on taking it, no matter what the situation is by then!

Oblivion

ian-d wrote: »

It's not an easy situation for the government, but come on, lending and spending comes from savers putting money into the banks; if the banks won't offer a reasonable rate of return then savers will look elsewhere, therefore less money in the pot for the banks to lend!

And it follows that banks will have no incentive to lend anyway, because whilst interest rates are so low there is no return for their risk. The way forward is to put interest rates up, not down, but it seems myopia rules as ever under this ludicrous government.

Dave.

nrsql

Oblivion wrote: »

And it follows that banks will have no incentive to lend anyway, because whilst interest rates are so low there is no return for their risk. The way forward is to put interest rates up, not down, but it seems myopia rules as ever under this ludicrous government.

Dave.

I agree - they should have put them up a few years ago by 1 or 2% to stop the housing market and debt getting out of control.
But that would have been unpopular. They couldn't do it 18 months ago when it might have helped because it would have caused a lot of reposessions and been unpopular. They won't do it now because it would cause more short term hardship and be unpopular.
The "court of public opinion" prevents them from doing that even though it might be "the right decision".

bagsacash

Tesco were quick to pass on their rate cut from 2.5% to 1.75%

Stavros_3

Alistair Darling on being asked this afternoon, about the savers being hit hard with next to no interest on their savings, hinted heavily that there will be something in the April budget. I'll have 50p each way that he will abolish tax on savings for basic rate payers

tradetime

Oblivion wrote: »

The way forward is to put interest rates up, not down, but it seems myopia rules as ever under this ludicrous government.

Dave.

Whilst I have no magical insight or answers that provide a solution, I can say Iceland tried that, in fact they furiously raised rates into implosion.
Just in case that is regarded as an isolated case the US tried it during the recession that preceeded the Great Depression. Not exactly a policy move with a good C.V.