BOE MPC - Interest Rates remain at 0.5%

worldtraveller

At its meeting ending on 4 November 2015, the MPC voted by a majority of 8-1 to maintain Bank Rate at 0.5%.

The Committee voted unanimously to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion, and so to reinvest the £6.3 billion of cash flows associated with the redemption of the December 2015 gilt held in the Asset Purchase Facility.

BOE MPC

As expected, Ian McCafferty voted against the Governor's proposition to maintain rates at 0.5%, preferring to increase rates by 25 basis points.

Generali

I'm shocked, shocked I tell you.

In other news: taxes and death both confirmed as certain.

Thrugelmir

All eyes remain on the Fed.

wotsthat

Talking head on Bloomberg yesterday said we should be sympathetic to central bankers because they're only human and can't predict the future. Then, in the very next breath, he said if the US raise rates in December further QE by June is a certainty.

caronoel

worldtraveller wrote: »

At its meeting ending on 4 November 2015, the MPC voted by a majority of 8-1 to maintain Bank Rate at 0.5%.

The Committee voted unanimously to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion, and so to reinvest the £6.3 billion of cash flows associated with the redemption of the December 2015 gilt held in the Asset Purchase Facility.

BOE MPC

As expected, Ian McCafferty voted against the Governor's proposition to maintain rates at 0.5%, preferring to increase rates by 25 basis points.

Rates not now expected to rise until the second half of 2016

http://www.bbc.co.uk/news/business-34733480

I wouldnt be at all surprised if rates are still at this level in early 2017.

The crashists must be despairing

lisyloo

Rates not now expected to rise until the second half of 2016

I am stoozing my mortgage which ends November 2018, so it's not happening until then :-)

chucknorris

caronoel wrote: »

The crashists must be despairing

Don't worry, my happiness is compensating for their despair.

Thrugelmir

caronoel wrote: »

The crashists must be despairing

Don't forget that interest rates aren't just set by central banks. There's also the market to consider. Shrinking bank balance sheets may ultimately require higher margins.

chucknorris

Thrugelmir wrote: »

Don't forget that interest rates aren't just set by central banks. There's also the market to consider. Shrinking bank balance sheets may ultimately require higher margins.

A lot of people seem to miss that fact, when they rant on about interest rates can only go one way etc., the banks already have reasonable margins on their more recent and their old variable rate mortgage products. Low margin tracker mortgages are only a small percentage of the overall mortgage market.

Thrugelmir

chucknorris wrote: »

A lot of people seem to miss that fact, when they rant on about interest rates can only go one way etc., the banks already have reasonable margins on their more recent and their old variable rate mortgage products. Low margin tracker mortgages are only a small percentage of the overall mortgage market.

Depends in what context you consider a margin to be reasonable. Would you be happy operating on a 2% gross margin. Before all operating costs, banking levies, tax, bad debts etc are deducted.

CLAPTON

Thrugelmir wrote: »

Depends in what context you consider a margin to be reasonable. Would you be happy operating on a 2% gross margin. Before all operating costs, banking levies, tax, bad debts etc are deducted.

they don't seem to be doing too badly : honesty would have saved them a lot of money too.