MSE News: No base rate rise this month

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The Bank of England today announced it is holding the 0.5% historic low rate for the 23rd consecutive month ..."

Read the full story:
No base rate rise this month

Paulgonnabedebtfree

As someone who is more a borrower than a saver, I suppose I should be happy about this.
I do sympathise with savers though. Savings returns are lower compared to inflation than in more normal times I think.

neil40

I have been paying 1.49% for the last two years.Have been really lucky.Good old alliance & leicester!

Paulgonnabedebtfree

neil40 wrote: »

I have been paying 1.49% for the last two years.Have been really lucky.Good old alliance & leicester!

I got quite lucky too. The rates plummeted shortly after I came off my fixed rate deal. The fixed rate was 5.45%. Currently paying a bit over 2.7% (likely to be 2.8/2.9% at next quarterly review).

Burridge60

Lets wait and see the minutes of the meeting which are due out in a round two weeks. That will tell us if there were more than two members that voted for a rate rise.

Henry_P_Chester

What was an average 5 year fixed rate pre 2008?

Heyman_2

Henry_P_Chester wrote: »

What was an average 5 year fixed rate pre 2008?

You could get one for around 3.99% on a 90% LTV IIRC.

snarffie

Be very weary of predicted rate rises. Two years ago, we were all being advised to "FIX NOW before rates shoot up." We all know what happened then...

Rates will go up because the ONLY way is up, but the economy is in terrible shape at the moment, and inflation is going up due to oil, gas, electricty and food prices rising. Raising the rate won't do anything to affect these. Raising the rate will make a double-dip recession much more likely than it is even now and the BOE doesn't want that.

The most I can see happening (based on things not getting any better) is a small rate rise of a quarter percent or so at some point this year to pander to the markets more than anything.

But I know nothing.

Peelerfart

Yeah I remember the "FIX OR DIE" posters from back then.

I wonder what happened to them all ?

Burridge60

Most lenders have whipped their fixed rates off the market to re launch between .25 and .50 higher rates. But strangely they have dropped some of their tracker rates.

talk about red rags!

Henry_P_Chester

snarffie wrote: »

Be very weary of predicted rate rises. Two years ago, we were all being advised to "FIX NOW before rates shoot up." We all know what happened then...

Rates will go up because the ONLY way is up, but the economy is in terrible shape at the moment, and inflation is going up due to oil, gas, electricty and food prices rising. Raising the rate won't do anything to affect these. Raising the rate will make a double-dip recession much more likely than it is even now and the BOE doesn't want that.

The most I can see happening (based on things not getting any better) is a small rate rise of a quarter percent or so at some point this year to pander to the markets more than anything.

But I know nothing.

Actually raising base rates would make commodity prices cheaper by strengthening the pound. It's the weak pound that is exasperating the problem of high commodity prices.