MSE News: Base rate held and no further economic cash injection 8 December 2011 at 1:25PM in Savings & Investments 12 replies 2.3K views

Former_MSE_Guy

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

"Interest rates have been kept at a record low of 0.5% while the quantitative easing programme remained at £275bn ..."

Read the full story:
Base rate held and no further economic cash injection




This thread is not in the 'discuss house prices and economy board' as that is only open to those logged into the forum so anyone coming from the news story may not be able to see it.

dimbo61

So we now have the BOE base rate at 0.5% since March 2009
Great for anyone on a tracker mortgage like ME!

talexuser

dimbo61 wrote: »

Great for anyone on a tracker mortgage like ME!

That's the whole point, otherwise there would be a huge drop in house prices, much negative equity and many repossessions. And no certainty that it or some of it will not happen eventually anyway.

atush

I am an base plus .5%. Not doing my savings much good, but hey ho. It all evens out really, and I am overpaying too.

temporary1

Low interest rates are killing the economy, atrophying businesses and markets and destroying thousands of peoples livelihoods. During the charitable winter solstice, the 'i'm all right jack' mentality is particularly shameful and unnecessary, so can all those that are opportunistically benefitting from the banker's financial crimes against humanity please refrain from any selfish gloating, and instead, show some humility, dignity and respect for all the many that are, and will for some time, be suffering as a result of the continuing economic policy failings and mismanagement. If the BoE's monetary policy were reversed I'm sure the equivalent smug attitude would be considered just as ill-mannered.

ses6jwg

temporary1 wrote: »

Low interest rates are killing the economy, atrophying businesses and markets and destroying thousands of peoples livelihoods. During the charitable winter solstice, the 'i'm all right jack' mentality is particularly shameful and unnecessary, so can all those that are opportunistically benefitting from the banker's financial crimes against humanity please refrain from any selfish gloating, and instead, show some humility, dignity and respect for all the many that are, and will for some time, be suffering as a result of the continuing economic policy failings and mismanagement. If the BoE's monetary policy were reversed I'm sure the equivalent smug attitude would be considered just as ill-mannered.

Millions of people with mortgages and thousands of small businesses are being kept afloat by the current base rate. If anything if it helping the economy not killing it.

I am a saver and yes it is difficult for savers at the moment - the baby boomers have had their time with their final salary pension schemes and 500% house price growth. More fool them for not diversifying and relying on cash-based savings (a poor asset class historically) for income.

dimbo61

The BOE base rate has been 0.5% for over 2 years now and alot of people ME included have been paying 4.5/5% on fixed deals for 3/5 years. Did I read carefully what my mortgage went onto after the fix ended ? well no because I though I would take another deal or remortgage eleswhere but no need to with a base rate tracker and low rates.
Did the lenders make a BIG mistake when they offered tracker mortgages at 0.5% above base ? crystal ball time.
Rates need to stay low in the current fragile housing market

oldvicar

Hardly surprising that there is no more QE announced - yet. I suspect they haven't yet had time to 'spend' all the £75bn they 'printed' in October. [please no arguments that it wasn't really 'printed'].

What's intersting is that "Economists expect a further £50 billion of QE from the Bank of England in both the first and second quarters of 2012, taking the total up to £375 billion". That means continuing to 'print' money at a rate faster than the forecast growth in government debt.

Wobblydeb

oldvicar wrote: »

Hardly surprising that there is no more QE announced - yet. I suspect they haven't yet had time to 'spend' all the £75bn they 'printed' in October. [please no arguments that it wasn't really 'printed']

Well it isn't printed, but is created on a computer screen.......

Hello further inflation. Makes me think gold prices (in GBP) haven't peaked yet

guitarman001

dimbo61 wrote: »

So we now have the BOE base rate at 0.5% since March 2009
Great for anyone on a tracker mortgage like ME!

Yeah, the indebted get to live happily while I get to suffer. Enjoy it at my expense, yeah?

guitarman001

temporary1 wrote: »

Low interest rates are killing the economy, atrophying businesses and markets and destroying thousands of peoples livelihoods. During the charitable winter solstice, the 'i'm all right jack' mentality is particularly shameful and unnecessary, so can all those that are opportunistically benefitting from the banker's financial crimes against humanity please refrain from any selfish gloating, and instead, show some humility, dignity and respect for all the many that are, and will for some time, be suffering as a result of the continuing economic policy failings and mismanagement. If the BoE's monetary policy were reversed I'm sure the equivalent smug attitude would be considered just as ill-mannered.

+1! Well said.