Negative Interest rates

Graham_Devon

You know with these sorts of things no that there would be one outcome affecting us all. It would make things more expensive.

Already this is being sighted as a reason to implement fee's on bank accounts as the banks would be looking to other ways of making money.

Seems a geuine enough reasoning to me.

On a personal level, I just wonder how much more these influencial, intelligent people need to witness before they figure out we don't want the debt levels we have in 2007.

purch

grizzly1911 wrote: »

What would happen if we all took our money out and put it under the bed?

Not too much.

The amount the public hold will be only a small part of the overall amount.

Remember every overseas Bank that deals in GBP will hold an account with a UK clearer, so basically all GBP held worldwide is part of this reserve pot.

purch

Cited not Sighted :eek:

Graham_Devon

purch wrote: »

Cited not Sighted :eek:

Who really cares?

Got my point across.

Mr._Pricklepants

Graham_Devon wrote: »

Who really cares?

Got my point across.

Is there an adult learning centre round your way?
They might be able to help with those difficult things like words, numbers and percentages.

MacMickster

I am now seriously worried about the choice of the next governor of the BoE.

We already effectively have negative interest rates in real terms. That has done nothing to stimulate the economy. I can't imagine taking the base rate slightly negative would have a major effect either.

Should reducing interest rates to minus 2 or 3% be considered however then MSE might become a very strange place, with threads complaining that utility companies won't allow people to increase their monthly direct debit for example. Talk of buy now, pay later offers in shops being replaced by pay now, buy later deals etc. Others would be paying their tax bill early and their council tax in a lump sum, whilst tenants would want their landlords to take a larger deposit.

At least Wonga would be largely unaffected.

PaulF81

shortchanged wrote: »

Is this the green shoots some refer to?

http://www.thedailymash.co.uk/?p=1512&print=1
:rotfl::rotfl::rotfl:

Graham_Devon

MacMickster wrote: »

I am now seriously worried about the choice of the next governor of the BoE.

Yer - me too. Well I was anyway

However, we've got those who really backed his entry calling for negative interest rates and £175bn extra QE in the last week alone. Of course, Carny has said he's looking to do other stuff, and the way he desccribes "other stuff" as unconventional, these two suggestions fit nicely.

Scary times.

PaulF81

trying to boost exports?

brit1234

The solution is to set a business bank like in Germany. Everyone from the main parties supports it. Why haven't we got it yet unless the state of our big 5 banks is terrible.

Negative interest rates will cause bank runs.