Carney guarantees low rates on breakfast tele

Fella

"Savers to pay the mortgages of all those people who bought a house they can't afford, for at least the next three years".

Well, that'd be the honest headline (although there will be plenty of VIs & morons who rush to argue, including on this thread no doubt).

chucky

Fella wrote: »

"Savers to pay the mortgages of all those people who bought a house they can't afford, for at least the next three years".

That's nonsense. Who told the savers that interest rates and savings accounts were going to stay at the level they were previously?
Who said that savings accounts the only way to generate yield on investments?

That would be the honest headline (although there will be plenty of VIs & less intelligent beings who will rush to argue, including on this thread no doubt).

Thrugelmir

Fella wrote: »

"Savers to pay the mortgages of all those people who bought a house they can't afford, for at least the next three years".

Borrowers pay interest, savers earn interest.

Something worth remembering.

purch

If anyone is going to 'hang on every word' that comes out of the mouth of our new Gov'ner of the BOE, then they will be very busy over the next few years.

Carney is going to be giving off and on the record interviews and comments with regularity, but if you are expecting him to tell you anything of substance you will probably be hoping in vain.

Mervyn King was not a good communicator, although the public and markets expected him to be, Steady Eddie George hardly spoke in public at all, Robin Leigh Pemberton (who he Ed?) had a virtually non existant public profile, and who can even remember Gordon Richardson , let alone any of the earlier Governors without resorting to the BOE website or wiki ?

The Governor of the Bank of England is not a sage, guru or miracle worker, and shouldn't be expected to be so. He can't predict anything with any real accuracy beyond the next quarter or two, so don't expect him to.

Any guarantee that he makes will be worthless, so don't bet your life savings on it.

lvader

Loughton_Monkey wrote: »

What we have here, is a little man brought over from one of our colonies. Having been here 5 minutes, he has the gall to stand up and threaten a vulnerable old early retiree (i.e. my good self) that I am now set to achieve a miserable 1.5% rate on my hard-earned lifetime savings - for the rest of my life.

Looks like I might have to sell my house, but luckily the BBC News seem to be recommending "Quick House Sale" firms that are obviously OK because they are going to be monitored by the OFT.

I know what will happen. I'll get poorer and poorer. When all my money is gone, I'll be forced to get a job. That job will tip unemployment under 7%. Now I have no money, Carney will put interest rates up to something I could have lived on.....

I'm seriously going to have to think about emigrating somewhere. Bongo Bongo land might be good.....

Sounds like poor retirement planning to me, you decided this high risk strategy, now you are paying the price.

Fella

Thrugelmir wrote: »

Borrowers pay interest, savers earn interest.

Something worth remembering.

Except they don't though do they. With inflation at 3% & IRs at much less than that, Borrowers are effectively being paid interest on their loans, whilst savers are being charged interest on their savings & watching their spending power dwindle every year.

ukcarper

Fella wrote: »

Except they don't though do they. With inflation at 3% & IRs at much less than that, Borrowers are effectively being paid interest on their loans, whilst savers are being charged interest on their savings & watching their spending power dwindle every year.

How many people are on interest rates of less than 3%

chewmylegoff

Carney pledged to keep interest rates at their current level until unemployment falls below 7%.....of course he caveated this 'promise' by saying that he was good for his word unless he changed his mind and decided that it was appropriate to raise rates even though unemployment was still above 7%. So basically he said nothing.

Thrugelmir

Fella wrote: »

Except they don't though do they. With inflation at 3% & IRs at much less than that, Borrowers are effectively being paid interest on their loans, whilst savers are being charged interest on their savings & watching their spending power dwindle every year.

If wage inflation exceeded cost inflation. Then I would agree. Currently it doesn't. So leveraging up on debt, as was the thing to do in the boom times, may not prove so profitable.

BOE has targeted the unemployment rate. As there's plenty of labour capacity that can be absorbed in the economy with no impact on wage levels. So no risk of inflation in this regard running away at the current time.

Leaving the Government and the consumer with the task of chipping away at the monumental debts that exist.

News from Australia suggests that the commodities boom is over. Which will result in downward pressure on UK imported inflation.

Loughton_Monkey

lvader wrote: »

Sounds like poor retirement planning to me, you decided this high risk strategy, now you are paying the price.

Although I say it myself, my retirement planning was impeccable.....

Shame about the assumptions....