Interest rates direction

Generali

Thrugelmir wrote: »

The USA is insular so won't be bothered what others think.

Still hovering just above it's 52 week low.

When it comes to the USD, remember the old line from the Fed, "It may be our currency but it's your problem'.

Crashy_Time

tkane wrote: »

Right, so interest rates which affect every mortgaged property in the UK are not an important factor but what happens to the Aberdeen housing market will be pivotal.

Do you not see the idiocy in your own statements?

Try reading more slowly, you are not taking in what is being said.

wymondham

Jack_Johnson_the_acorn wrote: »

Seems like the banks are predicting low rates for a long time to come. Good news for all I suppose.:beer:
:T

not quite all - ask anyone trying to save. Saving is almost futile at present, which is destroying a whole mind-set of future planning. This will bite us big time in butt!

princeofpounds

Why do they get paid so much to do that then? Crashy could pull that trick off.

Banks don't get paid much; Lloyds have had negative earnings for the last four years. (though exactly what constitutes a bank's earnings is a little complicated, but that topic is another discussion).

Bankers get paid quite a bit, at least the senior managers do.

The trick is not so much borrowing money from markets and depositors, and then lending it. It's about working out the best way do do that.

ChopperST

wymondham wrote: »

not quite all - ask anyone trying to save. Saving is almost futile at present, which is destroying a whole mind-set of future planning. This will bite us big time in butt!

Inflation is low at present.

Off the top of my head someone starting saving from scratch could save;

£4k TSB @ 5%
£2.5k Nationwide @ 5%
£2k Tesco @ 3%
£20k Santander @ 3%

(granted these are current accounts but never-the-less pay a risk free income each month)

Nearly £30k in instant access accounts, £60k as a couple of cash savings that beat inflation and that is ignoring the various regular savers as well.

I really don't see the issue here.

onlyroz

ChopperST wrote: »

Inflation is low at present.

Off the top of my head someone starting saving from scratch could save;

£4k TSB @ 5%
£2.5k Nationwide @ 5%
£2k Tesco @ 3%
£20k Santander @ 3%

(granted these are current accounts but never-the-less pay a risk free income each month).

Yep, I can take the money out of my Santander mortgage at 0.99% and plug it into my Santander 1-2-3 account at 3%, and also get 1% cashback on my mortgage payments. Win win win I say.

ChopperST

Stupidly took a 3 year fix in 2013 so another 12 months to get a decent rate for us!

Dan:_4

Hope it's still around in November when my current deal is up - should also just slide into the 60% LTV bracket by then too. Happy Days

shortchanged_2

mayonnaise wrote: »

Good news. :beer:

shortbrained will be gutted, poor chap.

Well its good news for me personally mayo as I have a mortgage but then I can see the bigger picture and realise that an ultra low interest rate economy equates to a weak economy.

mayonnaise

shortchanged wrote: »

Well its good news for me personally mayo as I have a mortgage but then I can see the bigger picture and realise that an ultra low interest rate economy equates to a weak economy.

Most of the world's major economies have an 'ultra low' rate currently. Are they all weak economies?