BOE Bean: Will Keep Rates Low For As Short A Time As Possible

ffacoffipawb

ruggedtoast wrote: »

Its going to be chaos when rates go up. Can you imagine the Mail

"Brown Banishes Hopes of Housing Market Recovery"

And the Express

"Rates Rampage Leads to More Maddie Sightings"

And The Sun

"AIDS Lion in Dirty Den shock"

foreversummer

inspector_monkfish wrote: »

"We're trying to ensure that this is as short-a-lived period of unusually low interest rates as we can make it," Bean said, in response to a question on the plight of savers who are receiving little income on their investments due to the extremely loose nature of monetary policy.

Seems obvious to me he is just trying the appease the savers. All he is actually saying is that they will not keep rates low any longer than necessary which is pretty obvious really. He says nothing about how long it will be necessary to keep rates low.

Foreversummer

Sapphire

Dan: wrote: »

Who here would be happy to see rates rise?

Anyone who has savings would be very happy.

kennyboy66_2

Thrugelmir wrote: »

Shares will come back into fashion at some point.

Wouldn't disagree, although many companies are as highly geared as a BTL investor.

Heyman_2

foreversummer wrote: »

Seems obvious to me he is just trying the appease the savers. All he is actually saying is that they will not keep rates low any longer than necessary which is pretty obvious really. He says nothing about how long it will be necessary to keep rates low.

Foreversummer

Ben Bernanke of the US Fed Reserve has openly said that he expects their rates to be low for a very long time i.e. well into 2011 and perhaps beyond.

I don't see why the UK will be any different.

inspector_monkfish

Heyman wrote: »

Ben Bernanke of the US Fed Reserve has openly said that he expects their rates to be low for a very long time i.e. well into 2011 and perhaps beyond.

I don't see why the UK will be any different.

yep, i reckon there could be a cut to 0.25 or lower at the next MPC meeting

lemonjelly

inspector_monkfish wrote: »

yep, i reckon there could be a cut to 0.25 or lower at the next MPC meeting

I hope you're taking the P double E!

I'd love interest rates to increase. The savings I had were paying me a couple of hundred a month after tax. They're now paying next to nowt! I'm debt free. Don't have a mortgage (yet!)

I understand to an extent why they are low, & anticipate they'll be there for a bit. But may start doing a little jig when they rise again.

inspector_monkfish

lemonjelly wrote: »

I hope you're taking the P double E!

I'd love interest rates to increase. The savings I had were paying me a couple of hundred a month after tax. They're now paying next to nowt! I'm debt free. Don't have a mortgage (yet!)

I understand to an extent why they are low, & anticipate they'll be there for a bit. But may start doing a little jig when they rise again.

haha, of course!
never say never though.....;)

Thrugelmir

kennyboy66 wrote: »

Wouldn't disagree, although many companies are as highly geared as a BTL investor.

Across the European markets around £320 billion has been raised in rights issues by the end of June. Thats around 10% of market capitalisation.

A lot of companies have also deleveraged rapidly by cutting staff costs and dividends to conserve cash.

Unfortunately the new generation BTL investor doesn't have this flxibility.

Thrugelmir

Heyman wrote: »

Ben Bernanke of the US Fed Reserve has openly said that he expects their rates to be low for a very long time i.e. well into 2011 and perhaps beyond.

I don't see why the UK will be any different.

What rate is defined as low?