BoE's Kate Barker - Rates could stay low for some time

inspector_monkfish

bendix wrote: »

This woman may or may not have a great deal of influence over BofE official rates. And the BofE rate may or may not stay at 0.5% for another year or so.

It's all moot, because at the end of the day the interest rates that interest you and me are mortgages, term deposits and credit rates, none of which are linked inextricably to the BofE rate. They may tip a nod to the BofE rate, but the financial institutions are completely free to set retail rates at whatever level they choose.

And, frankly, those are starting to track higher as banks seek to get greater security on dodgy loans made a few years ago and - of course - seek to raise profits.

Anyone who thinks otherwise or is seeking comfort in BofE blandishments is being very naive.

to be fair though, if all the lenders started hiking rates left right and centre, whilst BOE remained the same, they would soon start losing customers who suddenly see some competition back in the market

there will always be those that don't follow the others, and leave rates low, possibly attracting new customers

swings and roundabouts really

Nationwide just done 0.30, which is nothing really, but if they start doing that every month it would be business suicide !!

bendix

. . which makes the OP academic at best, completely irrelevant to the real world, at worst.

bendix

inspector_monkfish wrote: »

to be fair though, if all the lenders started hiking rates left right and centre, whilst BOE remained the same, they would soon start losing customers who suddenly see some competition back in the market

there will always be those that don't follow the others, and leave rates low, possibly attracting new customers

QUOTE]


Can you explain why credit card companies seem to be sitting comfortably at rates in the mid to high teens then?

inspector_monkfish

neil324 wrote: »

Of course its relevant. The BOE base rate is detached from reality.

No its not !!
Have you seen high street savings rates???:eek:

neil324

chucky wrote: »

you'll find that the BOE set's it's own base rate.
mortgage rates that you refer to are set by the markets.

they are different things...

No !!!! sherlock, but you would'nt think it from the op and the following posters.

Really2

bendix wrote: »

It's all moot, because at the end of the day the interest rates that interest you and me are mortgages, term deposits and credit rates, none of which are linked inextricably to the BofE rate.

Well I have a lifetime BOE tracker that is offset so actual your are quiet wrong, has my savings and mortgage are directly linked.

We have hit the interest rate denial stage,
"They are going through the roof i tell thee. No mater base rate will be low mortgages will be 17% for the next 100,000 years."

Has no one asked who the hell is taking out a 2 or three year fixed rate at the moment.

chucky

neil324 wrote: »

No !!!! sherlock, but you would'nt think it from the op and the following posters.

you're the one that brought up an article about mortgage rates when people were discussing the BOE base rate

Really2

Really2 wrote: »

Has no one asked who the hell is taking out a 2 or three year fixed rate at the moment.

To answer my self firstdirect do 3.49% and 3.89% which is only £99 to set up.:eek:

Through the roof I tell thee:rotfl:

neil324

chucky wrote: »

you're the one that brought up an article about mortgage rates when people were discussing the BOE base rate

Yes and the fact that they are going up!!!!!

inspector_monkfish

neil324 wrote: »

No !!!! sherlock, but you would'nt think it from the op and the following posters.

eh?

where have i said anything in my original post about mortgage rates?

its just a simple link to a story from the guardian about kate barker

why are you twisting it?