No interest rate rise in 2011

HAMISH_MCTAVISH

Cleaver wrote: »

You do understand that whilst hiking the interest rate to 5% tomorrow would allow pensioners better interest on their savings, the catastophic effect this would have on the wider economy would probably mean that pensioners (and everyone else) would be royally f*cked?

Oh, I'm pretty sure that concept is far too complicated for him to understand.

Jimmy_31

HAMISH_MCTAVISH wrote: »

Are you, well how can I put this politely..... a bit special?

Care to explain the mechanism through which you think that works?

Im beginning to get it now why a lot of people dont like you and think you are a bit thick. you keep calling me out on things i say and only have a comeback to certain things i say in response to you.

Why is that ?

Jimmy_31

Cleaver wrote: »

You do understand that whilst hiking the interest rate to 5% tomorrow would allow pensioners better interest on their savings, the catastophic effect this would have on the wider economy would probably mean that pensioners (and everyone else) would be royally f*cked?

I think my grandad who grafted his bo£"$ox off all his life should be allowed to earn a decent return on his life savings after all the taxes and contributions hes made and paid over the years, i couldnt really give a s&*t if every BTL landlord lost their investments overnight or anyone else who is desperate for interest rates to stay low for that matter.

I say my grandad because hes always telling me how all these to55ers in suits are f&*£ing up his retirement by playing their clever little games and ballsing it up every single time.

nice fella my grandad, hes no economist ill give you that but he does know right from wrong.

Cleaver

Jimmy_31 wrote: »

I think my grandad who grafted his bo£"$ox off all his life should be allowed to earn a decent return on his life savings after all the taxes and contributions hes made and paid over the years, i couldnt really give a s&*t if every BTL landlord lost their investments overnight or anyone else who is desperate for interest rates to stay low for that matter.

Please stop falling in to the trap of thinking that the base rate of interest is a tool that is just linked to house prices, it exists to ensure we have a stable financial system for the entire country. By rising it 900% overnight (which is what you suggested) you would send our entire economy, and therefore country, in to chaos. Every single person who lives in this country would be negatively affected, not just BTL landlords.

In terms of your Grandad, if he wants a decent return on his savings then the last thing he would want is the base rate going to 5% overnight, for the reasons outlined above.

DervProf

Jimmy_31 wrote: »

I think my grandad who grafted his bo£"$ox off all his life should be allowed to earn a decent return on his life savings after all the taxes and contributions hes made and paid over the years, i couldnt really give a s&*t if every BTL landlord lost their investments overnight or anyone else who is desperate for interest rates to stay low for that matter.

I say my grandad because hes always telling me how all these to55ers in suits are f&*£ing up his retirement by playing their clever little games and ballsing it up every single time.

nice fella my grandad, hes no economist ill give you that but he does know right from wrong.

Well said.

gordonc888

I believe there will be a quarter point increase in the rate during the coming months (probably May) simply because inflation is now too significant to ignore. The primary role of the BoE is to control inflation and obviously they're failing in this task. Therefore they now have to be seen to be pro-active even if it's something ineffectual as raising the rate a quarter percentage. I say ineffectual because 0.25% is too insignificant to make any impact on the rate of inflation. It should've been raised a quarter point 12 months ago so now it's too little too late.

Brallaqueen

Orpheo wrote: »

Fingers crossed. Or are you praying for divine intervention?

Nope, things are OK as they are, it would just be nice to experience a low interest rate
My stats look a bit wonky to be sure, but they don't show that I overpaid 1k on my mortgage last year by being MSE and servicing my largest debt first.

GCH888 wrote: »

I predict a future "customer" of Wonga.com

Cheeky beggar! My old ma brought me up to have some good sense and stay away from things like that.

crash123

I think interests rates will be low,( not necessarily 0.5% could be a bit higher) for a long time because we have a zombie economy. We have too much debt.This sucker is going to go on for years.

Graham_Devon

Cleaver wrote: »

Please stop falling in to the trap of thinking that the base rate of interest is a tool that is just linked to house prices, it exists to ensure we have a stable financial system for the entire country. By rising it 900% overnight (which is what you suggested) you would send our entire economy, and therefore country, in to chaos. Every single person who lives in this country would be negatively affected, not just BTL landlords.

In terms of your Grandad, if he wants a decent return on his savings then the last thing he would want is the base rate going to 5% overnight, for the reasons outlined above.

While you are correct in what you say, even the BOE members are admitting the reason they find it so difficult at the moment to raise rates is mainly due to household finance.

Top economists, are suggesting rates can not really go up to any "normal" (as I heard it stated) levels, due to the housing market.

Panorama programme, when talking about interest rates, hardly touched on oil, electric, food. They touched on that later when it came to wage rises. But the interest rate talk, all revolved around housing. One representative from saga suggested rates need to rise. Economist from some london flash firm suggested it simply can't happen due to houses. Another economist from another flashy london place said they can't raise rates because effectively this would start another crisis as defaults take hold.

So, while what you say is correct, there does, in the media at least, and from BOE members (or could be ex members, certainly blanchflower was one of them interviewed on the matter), housing is sited, or at least suggested if you cut past the carefully used words, as the main problem concerning base rates.

I think were all aware, if you listen to whats being said, that rates are being kept low in order to stave off a housing crisis, which will lead to other problems in the economy.

ess0two

Jimmy_31 wrote: »

I think my grandad who grafted his bo£"$ox off all his life should be allowed to earn a decent return on his life savings after all the taxes and contributions hes made and paid over the years, i couldnt really give a s&*t if every BTL landlord lost their investments overnight or anyone else who is desperate for interest rates to stay low for that matter.

I say my grandad because hes always telling me how all these to55ers in suits are f&*£ing up his retirement by playing their clever little games and ballsing it up every single time.

nice fella my grandad, hes no economist ill give you that but he does know right from wrong.

Since when did paying taxes and contributions warrrant a return on savings,more crap.