Interest rates stay at 0.5% - No additional QE

wotsthat

Percy1983 wrote: »

But surely the economy needs them to get back 'normal' before the current becomes normal.

I don't want them to be normal - just correct for the current circumstances whether that's higher, lower or the same.

I get nostalgic about some stuff - not interest rates though.

ILW

Does look like if BoE had kept their eye on the ball and bumped up rates around 2003, we would not be nearly as deep in it as we are.

GeorgeHowell

The coalition won't want rates going up before the 2010 election. Voters vote with their pockets and any increase in mortgage interest rates will hurt the government. Savers will be pleased but the majority who have a serious amount of savings probably vote Conservative anyway. There's more to be gained by helping those in debt.

wotsthat

ILW wrote: »

Does look like if BoE had kept their eye on the ball and bumped up rates around 2003, we would not be nearly as deep in it as we are.

They did - have a look at the graph - how did it work out?

ILW

wotsthat wrote: »

They did - have a look at the graph - how did it work out?

not by enough obviously.

PaulF81

chucknorris wrote: »

Yet another month when I forgot that the decision was today, years ago I would have been paying attention waiting to hear what the decision was.

Thought the same on the drive home today. Flatlined in a word. Bets on the first move up? Willing to challenge Andrew sentence on this, I reckon the first move up wont be till 2015 at the earliest.

Ilw I was thinking about this, surely we would have hamstrung ourselves further for the gfc? Globally, the pound would have killed our non existent manufacturing industry, granted house prices would have slowed but globally, others would have benefitted whilst we practiced prudence. There needs to be greater international control of markets IMHO and there needs to be a far wider controls available to the BOE, interest rates are too blunt an instrument. I would give th BOE the ability to cap total mortgage lending financial year to financial year.

I also think controls lending unsecured lending should be induced, based on disposable income after outgoings are considered.

grizzly1911

PaulF81 wrote: »

there needs to be a far wider controls available to the BOE, interest rates are too blunt an instrument. I would give th BOE the ability to cap total mortgage lending financial year to financial year.

I also think controls lending unsecured lending should be induced, based on disposable income after outgoings are considered.

I tend to agree, back to where we were 25+ years ago when things were "normal" sounds good to me.

Even back then people lied about their disposable income but at least there was somone their to validate it, a little, before the computer said yeah based on whater carp was put in.

Personaly I think rates need to start moving upwards they have been on the floor for too long.

grizzly1911

wotsthat wrote: »

That graph stopped after September 2011 - how come?

That is all the posters source had?

Extend if you want and it is till 5X the BOE rate, project forward and it will start to rise.

ruggedtoast

I pretty much guarantee they will begin to rocket up when my fix ends.

Thrugelmir

PaulF81 wrote: »

I would give th BOE the ability to cap total mortgage lending financial year to financial year.

I also think controls lending unsecured lending should be induced, based on disposable income after outgoings are considered.

Credit markets are already self regulating. The review by the FSA published last month was partly irrelevant. As many lenders have already exceeded the initial requirements in tightening down.