Interest rates stay at 0.5% - No additional QE

Eellogofusciouhipoppokunu

DervProf wrote: »

Very rarely did I mention this, and it was quite a long time ago.

In fact, well before you joined this forum. You've been doing your homework, haven't you ?

You've mentioned it a couple of times when people asked you about it. I've done the same. We've both been raised to be polite and answer questions. I dare say much of our background and many of our goals are similar.

DervProf

Eellogofusciouhipoppokunu wrote: »

You've mentioned it a couple of times when people asked you about it. I've done the same. We've both been raised to be polite and answer questions. I dare say much of our background and many of our goals are similar.

Yes, like I said, just a few times, and well before you joined this forum. Fair play for doing your research though.

Yes, our goals are the same. I've pretty well reached mine, and I'm happy. I didn't set my targets too high, as I wanted to reach them, and I'm not too fussed about having loads of money anyway. I live a reasonably simple, but comfortable life. As you may know, my basic stance on property prices is that I don't like to see property being used as a cash machine, I don't agree with the amount of emphasis, put on by the media, on HPI = good. I don't wish to see HPI for my own selfish gain, when HPI nearly priced me out before I eventually managed to buy a place after a "crash".

StevieJ

Eellogofusciouhipoppokunu wrote: »

You've mentioned it a couple of times when people asked you about it. I've done the same. We've both been raised to be polite and answer questions. I dare say much of our background and many of our goals are similar.

Good to see Harry Boyle back, I missed that

Eellogofusciouhipoppokunu

StevieJ wrote: »

Good to see Harry Boyle back, I missed that

Love your avatar Stevie. The precursor to the Simpsons and Family guy.

Eellogofusciouhipoppokunu

DervProf wrote: »

Yes, like I said, just a few times, and well before you joined this forum. Fair play for doing your research though.

Yes, our goals are the same. I've pretty well reached mine, and I'm happy. I didn't set my targets too high, as I wanted to reach them, and I'm not too fussed about having loads of money anyway. I live a reasonably simple, but comfortable life. As you may know, my basic stance on property prices is that I don't like to see property being used as a cash machine, I don't agree with the amount of emphasis, put on by the media, on HPI = good. I don't wish to see HPI for my own selfish gain, when HPI nearly priced me out before I eventually managed to buy a place after a "crash".

Yep, nothing in any of your post that I would disagree with. When I bought my first home, it was a 2 bed FTB sort of house and was everything I wanted - semi detached with parking and front and rear gardens. I would have been happy to live there forever but then I met Mrs Good and we had kids and had to move. All four of us stayed there until we needed the baby to go into her own room and the 2nd bedroom wasn't large enough for the girls to share. I had virtually paid that mortgage off before we moved, and still miss the place. It was in Cheshire and had a lovely, large rear garden.

sabretoothtigger

My take on these rates is we are freewheeling. At one point in time it mattered what the interest rate was now, it was the gear of the economy used to control monetary worth.
Its now not stated but an unknown difference between inflation and other factors like QE.

That is how control is administered, nothing appears to be happening with interest rates because its a relic. We are rolling down hill, hopefully we got some brakes as backup

pop_gun

sabretoothtigger wrote: »

My take on these rates is we are freewheeling. At one point in time it mattered what the interest rate was now, it was the gear of the economy used to control monetary worth.
Its now not stated but an unknown difference between inflation and other factors like QE.

That is how control is administered, nothing appears to be happening with interest rates because its a relic. We are rolling down hill, hopefully we got some brakes as backup

I could never quite put what you wrote into a coherent thought and translate it into words.

I think mortgage interest rates will be thought in the same way as the BoE's interest rates were. Interest rates can't go up because of government borrowing and sovereign debt levels.

But mortgage rates are independent of the central bank and individual banks control their own rates. The banks recently raised mortgage rates. Some of those banks used the extra income to entice savers to move their money by offering fixed term saving accounts.

I predict in years to come the first recapitalised banks will make saving account rates dependant on their mortgage rates.
If I'm right savers won't need to worry about the BoE's IRs to get a good return.

Thrugelmir

pop_gun wrote: »

But mortgage rates are independent of the central bank and individual banks control their own rates. The banks recently raised mortgage rates. Some of those banks used the extra income to entice savers to move their money by offering fixed term saving accounts.

Wrong way round. Banks will entice savers in order to lend money to borrowers. Mortgage rates will reflect the rate paid to savers.

Having said that. Banks will only entice savers if there is demand to borrow.

grizzly1911

pop_gun wrote: »

I could never quite put what you wrote into a coherent thought and translate it into words.

I think mortgage interest rates will be thought in the same way as the BoE's interest rates were. Interest rates can't go up because of government borrowing and sovereign debt levels.

But mortgage rates are independent of the central bank and individual banks control their own rates. The banks recently raised mortgage rates. Some of those banks used the extra income to entice savers to move their money by offering fixed term saving accounts.

I predict in years to come the first recapitalised banks will make saving account rates dependant on their mortgage rates.
If I'm right savers won't need to worry about the BoE's IRs to get a good return.

Savings rates bear little relation to BOE rate anyway. There are still
~3.0% instant access accounts out there. Until recently 4%+ was available on 2 year fixes. Things have gone pear shaped only recently after 3ish years of 0.5% BOE.

It is just B/Soc pass book and instant access, non internet,bank accounts that are useless.

ILW

grizzly1911 wrote: »

Savings rates bear little relation to BOE rate anyway. There are still
~3.0% instant access accounts out there. Until recently 4%+ was available on 2 year fixes. Things have gone pear shaped only recently after 3ish years of 0.5% BOE.

It is just B/Soc pass book and instant access, non internet,bank accounts that are useless.

Or to put it another way, BoE have managed to lose most of the influence they used to have, along with their credibility.
Well done Merve.