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Base Rate Held at 0.5%

This thread is to discuss the following news story:
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Comments

  • Geoffo_M
    Geoffo_M Posts: 1,161 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Good news for mortgage payers - bad news for savers
  • Reaper
    Reaper Posts: 7,340 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Geoffo_M wrote: »
    Good news for mortgage payers - bad news for savers
    Not necessarily. It could have gone down to 0.25% now the government has decided it is going to be a long recession afer all.
  • bagsacash
    bagsacash Posts: 194 Forumite
    There are signes the economy is picking up, a reduction in interest rates would have indicated things are getting worse, much worse.
  • mr_fishbulb
    mr_fishbulb Posts: 5,224 Forumite
    Part of the Furniture Combo Breaker
    bagsacash wrote: »
    There are signes the economy is picking up
    There are also suggestions that the economy will continue to be bad for a while yet
  • alared
    alared Posts: 4,029 Forumite
    The reason it was held at .5% is because to cut any more would have no effect,they`ve gone as far as they can.
    The banks (still a law unto themselves) wouldn`t pass any cut on and with savers very unhappy with crap rates,they could hardly cut them further.
    They are now relying on QE (printing money) but things can only get worse.
    Sooner or later all this debt has to be paid for with higher taxes.
    The longer an election is delayed the deeper it`ll get.
    Labour are quite happy to rack up the debt because they wont be around to sort it out.
  • bagsacash
    bagsacash Posts: 194 Forumite
    It will take time for the economy to rise from its bottom yes. But its already being said the bottom has been reached, if thats the case then there are two out comes, the economy will either flatlines for god knows how long or the economy will start growing.
  • nw_man
    nw_man Posts: 739 Forumite
    Geoffo_M wrote: »
    Good news for mortgage payers - bad news for savers

    Not for a lot of prudent mortgage payers who took out fixed rates so they could budget for their mortgage.

    Good news for the lucky few who gambled on rate drops.
  • alared wrote: »
    Labour are quite happy to rack up the debt because they wont be around to sort it out.
    That's a bit of a silly statement isn't it? I'm sure that they will be doing all they can to get re-elected (if only so that Brown doesn't go down as one of the shortest serving Prime Ministers), and although the opinion polls aren't going their way at present, there's still time for them to recover some of the lost ground.
    "The trouble with quotations on the Internet is that you never know whether they are genuine" - Charles Dickens
  • alared
    alared Posts: 4,029 Forumite
    There is no way on earth that this motley crew can ever be re-elected,look at the odds at the bookies.
    They`ve had their run and managed to upset every section of the country.
    They`ll certainly be trying to get re-elected but the voters wont be fooled again.
    One year and counting,no chance.
  • GeorgeHowell
    GeorgeHowell Posts: 2,739 Forumite
    alared wrote: »
    There is no way on earth that this motley crew can ever be re-elected,look at the odds at the bookies.
    They`ve had their run and managed to upset every section of the country.
    They`ll certainly be trying to get re-elected but the voters wont be fooled again.
    One year and counting,no chance.

    One would hope that you are right, and you probably are. But ever since universal suffrage have we had such a gullible, politically and economically ignorant, short-termist, and fickle electorate ? Sadly I don't think it's quite a foregone conclusion.
    No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.

    The problem with socialism is that eventually you run out of other people's money.

    Margaret Thatcher
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