I want interest rates to stay at rock bottom for ever 31 October 2014 at 1:20PM in Savings & investments 56 replies 5.7K views

talexuser

because people can then afford houses - David Cameron according to the Telegraph:

http://www.telegraph.co.uk/finance/personalfinance/interest-rates/11199833/David-Cameron-I-want-interest-rates-to-stay-at-rock-bottom-for-ever.html

lalman

Low interest rates mean high asset prices.

We could have low rates forever - look at Japan... it depends if the oversupply in China and the sovereign debt crisis rubbles on in Europe or not... or will these countries make the structural reforms that will help the world out of this mess!

Glen_Clark

Its the same con as 'Help to Buy'
They have to misrepresent it like that to get elected because there are more losers than gainers under their policies.

JohnRo

What price "growth". More GDP manipulation.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/loans/10417604/Fears-of-debt-fuelled-recovery-as-credit-card-spending-jumps-revised-BoE-data-show.html

SW17

I wonder what Mr Cameron will say in a similar meeting when a group of pensioners (or anyone debt-free, but pensioners are more electorally critical for him) say that it's a disgrace interest rates are so low and they are become poorer in real terms...

kidmugsy

Mr Cameron is just a slightly less awful version of Mr Blair. Manifestly more intelligent, of course, but only slightly less awful.

Mr Osborne is less awful than Mr Brown by a rather bigger margin.

These are not high measures of merit, alas.

Glen_Clark

SW17 wrote: »

I wonder what Mr Cameron will say in a similar meeting when a group of pensioners (or anyone debt-free, but pensioners are more electorally critical for him) say that it's a disgrace interest rates are so low and they are become poorer in real terms...

Perhaps Cameron would say what he said before the last election. He promised to turn Britain from a "spend, spend, spend society" into a "save, save, save society". To prioritize borrowers over savers, he said, was "morally indefensible" and a Conservative government would "abolish income tax on savings for everyone on the basic rate of tax"
That speech has mysteriously disappeared from his party website, but it can still be found elsewhere: http://www.telegraph.co.uk/finance/personalfinance/pensions/10457090/Camerons-broken-promise-to-savers-costs-68bn.html

colsten

SW17 wrote: »

I wonder what Mr Cameron will say in a similar meeting when a group of pensioners (or anyone debt-free, but pensioners are more electorally critical for him) say that it's a disgrace interest rates are so low and they are become poorer in real terms...

I am a pensioner too, and would love to see better interest rates, from a purely selfish point of view. However, pensioners aren't the only people in the country and many younger people, including all the the mortgage owners, wouldn't call the present interest rates a disgrace. We also have inflation rates at very low levels, and on balance, I'd rather get a little less interest than see galloping inflation and repossessions.

Glen_Clark

Anyone who believed Cameron's 2009 Election Promise would have kept their savings in cash and lost out on about 100% growth.(dividends reinvested)
Money Printing would have stimulated production if it had been invested in Industry. But when the housing supply is restricted, and the population rises with unfettered immigration, housing becomes a safer investment than productive industry. So the QE money has been frittered away on housing costs, with 5 million people now claiming housing benefit. Investment in productive industry has actually fallen - hence the record national debt and deficit.

Glen_Clark

colsten wrote: »

I am a pensioner too, and would love to see better interest rates, from a purely selfish point of view. However, pensioners aren't the only people in the country and many younger people, including all the the mortgage owners, wouldn't call the present interest rates a disgrace. We also have inflation rates at very low levels, and on balance, I'd rather get a little less interest than see galloping inflation and repossessions.

We already have galloping inflation, but the Government Statistics don't show it because they ignore housing costs. Its the record low interest rates that are fueling the house price rises, as more money is thrown at the limited housing supply.

parcival

Cameron goes from bad to worse. Everything he does is handing more seats to Nigel - possibly a good thing, this country needs a major shake up...