Interest rates to be slashed again.

shortchanged_2

Oh well, all this points to is that this country is proper fooked if they are even contemplating such a move.

But seeing as it is an article in the Express which seems to have taken over the mantle from the Daily Sport (i.e the Daily Bullsh*t) since it closed down, I'm not surprised.

Really2

shortchanged wrote: »

Oh well, all this points to is that [STRIKE]this country is[/STRIKE] the world is proper fooked if they are even contemplating such a move.

Changed for you.

With the US and europe slowing down so much it will be a race to get what little export business is available so countries can kick start things.

To pop a bit from google news on it.
http://www.proactiveinvestors.co.uk/columns/ransquawk/6206/uk-opening-news-including-sharp-slowdown-in-jobs-outlook-suggests-that-recovery-is-slowing-6206.html

Markets are pricing in a 30% chance that BoE rate could be cut to 0.25% from 0.50% by February 2012 after the past two weeks’ turmoil. Economists do not now expect Bank rate to rise from 0.5% to 0.75% until 2013. (Sunday Times)

DervProf

"Millions on tracker deals would see £600 slashed off their yearly repayments should the Bank of England take the rate down to 0.25per cent."

Blimey, there are a lot of people out there with very big mortgages.

tod123

!!!!!! you lot all said interest rates had to go UP and that was the only way they could go.

Bunch of nutters.

Really2

DervProf wrote: »

"Millions on tracker deals would see £600 slashed off their yearly repayments should the Bank of England take the rate down to 0.25per cent."

Blimey, there are a lot of people out there with very big mortgages.

Good point, I presume they meant from before rates fell.

In reality 0.25% will mean about £30 less. I most probably would spend that instead of increasing overpayments by an extra £30 as it would be hardly worth it.

Generali

HAMISH_MCTAVISH wrote: »

It's almost as if the bears believe negative interest rates are impossible? (Unlikely as they'd QE first, but not impossible)

AIUI, negative interest rates are more about charging banks for holding cash on deposit at the Central Bank rather than actually paying people to borrow money. As such the change would be pretty technical.

I don't think the base rate can go negative as that is the repo rate and logically I don't see how you can pay someone to enter into a repo.

Pimperne1

staffie1 wrote: »

"A spokeswoman for Halifax said: “Despite the drop in market interest rate expectations over recent weeks, a cut in interest rates remains very unlikely."

And the prospect of the banks passing on the full benefit of the near-zero base rate remains even more unlikely!

Unless you are on a tracker in which case they have little option.

DervProf

Really2 wrote: »

In reality 0.25% will mean about £30 less. I most probably would spend that instead of increasing overpayments by an extra £30 as it would be hardly worth it.

So, £30 a month extra in the pockets of those with modest sized mortgages is going to improve the economy, is it ?

Mmmm, I wonder what a rate cut will do to the value of the £ ? I suspect that extra £30 is going to end up buying a little less than expected.

No doubt that those with mortgages will be touching themselves if rates do get cut. They'll think it's "It's like christmas has come early". Better not tell them that Santa isn't real, and the reason for their "windfall" is because the economy is *****d.

Really2

DervProf wrote: »

Better not tell them that Santa isn't real, and the reason for their "windfall" is because the economy is *****d.

I think the reason quiet a few of us switched to trackers was because we thought the bold bit.

quantic

Lowering/low base rates worries me, i fear that people in this country are stupid enough to buy a house when they can only afford to do so when the rate is this low, soon as it rises they will get the shock of their life.