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

bendix

Really2 wrote: »

PS what inflationary invironment?

Oh I dunno. How about oil prices doubling since their low of last December for a starter? You don't think that might have an impact? The knock on effect on food and other product pricing. The tens of billions of pounds of public money being pumped into the economy to stimulate the economy.

Small stuff like that.

chucky

bendix wrote: »

The tens of billions of pounds of public money being pumped into the economy to stimulate the economy.

Small stuff like that.

how will the asset replacement policy cause inflation?
all your doing is replacing debt with something more liquid - why would that cause inflation?

bendix

inspector_monkfish wrote: »

bendix wrote: »

Wow. That just shows what shysters the credit card companies are!
And they seem to have no shame either.
Must admit, it isn't something I really ever have to follow, as I am sensible enough to have no credit card debt.;)

I have a Tesco Credit Card, but I couldn't even tell you what the rate is, as I pay it off every month, and bank the Clubcard points!!:D

I don't have credit card - or any other debt - either.

But the point I was making is that there is not always a direct link between retail interest rates and B0fE rates, and as you can see, retail lenders can charge pretty much whatever they want in the pursuit of profits which - with banks in such dire straits, is right now.

Thrugelmir

Really2 wrote: »

But surely that is the risk? Some still have savings accounts at over 5% you could argue they are pushing up peoples mortgages.:)

Surely the idea of interest means you should be savy and adjust to the market direction.

Who is offering interest of 5% ?

Our offset account has the same interest rate as the mortgage ( base +.35%), so we've transferred our money out.

inspector_monkfish

bendix wrote: »

inspector_monkfish wrote: »

I don't have credit card - or any other debt - either.

But the point I was making is that there is not always a direct link between retail interest rates and B0fE rates, and as you can see, retail lenders can charge pretty much whatever they want in the pursuit of profits which - with banks in such dire straits, is right now.

i guess its a risk factor then, when it comes to credi cards.
they have suddenly realised that idiots that have a dozen maxed our credit cards are actually quite risky customers to have - so might as well try and get something back from them !



so your a 'cash only' kinda person are you?
no probs - i won't tell the tax man :D

StevieJ

I am confused here AD seems to think that interest rates going up is VI (bull) scaremongering, i.e. buy now before fixed rates go up, and neil seems to think it is the other way round i.e. he gives the impression that it is anti VI (bull) mmmm.

Really2

bendix wrote: »

Oh I dunno. How about oil prices doubling since their low of last December for a starter? You don't think that might have an impact? The knock on effect on food and other product pricing. The tens of billions of pounds of public money being pumped into the economy to stimulate the economy.

Small stuff like that.

But they are half of a year go that is deflation.

Really2

Thrugelmir wrote: »

Who is offering interest of 5% ?

Our offset account has the same interest rate as the mortgage ( base +.35%), so we've transferred our money out.

I mean pre crunch some still have fixed savings rates

inspector_monkfish

Really2 wrote: »

I mean pre crunch some still have fixed savings rates

can't be many of them !

Really2

inspector_monkfish wrote: »

can't be many of them !

NO I agree, I just did not agree if you get a good rate someone else is paying for it (IE Saver, the bears are rabid enough as it is:))
I think anyone who said they saw all this coming should of made the necessary arrangements (ie fix your savings or switch to a tracker;)):)