Bank Of England MPC - Interest Rates CUT to 0.25% + QE increase £60 Billion

wotsthat

cells wrote: »

Whats the big evil in having 20% of the housing market as rentals?

Is it reasonable to expect 0%? What is the percentage that seems reasonable to you to maximize economic and social benefits?

It's not the % that matters - it's who owns them.

If 20% of stock was owned by a faceless corporation hardly anyone would care because it's difficult to be jealous of a company.

System

What exactly is a lower interest rate supposed to stimulate?
People borrow money for investment in growth projects when they have confidence and the projected profits add up against the other expenses.
A few measly percentage points in an already low rate of interest are an insignificant factor.

The BoE should stop pretending it has anything to do with stimulating growth. That's up to the government, which if it wants to do something useful would be to slash corporation tax and business rates.

DividedNation

wotsthat wrote: »

Have you read the comments from the HPC crew? I think they need counselling.

Who are they?

DividedNation

Clifford_Pope wrote: »

What exactly is a lower interest rate supposed to stimulate?
People borrow money for investment in growth projects when they have confidence and the projected profits add up against the other expenses.
A few measly percentage points in an already low rate of interest are an insignificant factor.

The BoE should stop pretending it has anything to do with stimulating growth. That's up to the government, which if it wants to do something useful would be to slash corporation tax and business rates.

That guy at the BoE is an idiot.

If he want to increase growth he should double benefits.

Easy.

He should hammer the operations and redistribute their cash.

mwpt

wotsthat wrote: »

Have you read the comments from the HPC crew? I think they need counselling.

What did they expect? I find it so ironic that almost the entire forum over there was frothing at the mouth at the prospect of brexit, thinking it would give them their HPC. But government has indicated time and again that it'll do virtually anything to keep our house price based economy going, so interest rate cuts and QE were always going to be the result in the DIY brexit recession.

Graham_Devon

wotsthat wrote: »

Have you read the comments from the HPC crew? I think they need counselling.

What's your view though - we know your views on other peoples views as you are always letting us know.

What will this actually achieve, apart from more (and likely false) sentiment in the housing market, specifically for those who ar emore likely to be willing to take on larger debts?

One of the issues this morning raised on 5 live was that people are cutting back spending because they have to. Cost of renting increasing, already maxed out on debt etc etc. How does increasing the cost of housing (via this stimulus) help any of that?

Graham_Devon

mwpt wrote: »

What did they expect? I find it so ironic that almost the entire forum over there was frothing at the mouth at the prospect of brexit, thinking it would give them their HPC. But government has indicated time and again that it'll do virtually anything to keep our house price based economy going, so interest rate cuts and QE were always going to be the result in the DIY brexit recession.

The BOE, specifically Mark Carney was actually stating that your mortgage would likely increase due to interest rate rises if the result was brexit. They would rise because the pound would fall. Since then, the BOE have done everything in their power it seems to devalue sterling.

Many people on this very forum were throwing the same scare story around.

Jack_Johnson_the_acorn

Crashy_Time wrote: »

Bloomberg commentators saying "wrong decision" and "pushing on a string" :rotfl: Really fascinating watching them lose control TBH.

This is fantastic news for homeowners. How does this affect you Crashy?

mrginge

mwpt wrote: »

What did they expect? I find it so ironic that almost the entire forum over there was frothing at the mouth at the prospect of brexit, thinking it would give them their HPC. But government has indicated time and again that it'll do virtually anything to keep our house price based economy going, so interest rate cuts and QE were always going to be the result in the DIY brexit recession.

I remember one particular chap was on about house prices being up to 18% lower by 2018!
Step forward - Arch-brexiteer George Osbourne.

Thrugelmir

Going to heap even more pressure on the underfunded Company schemes. Cause people to cut back back on spending in order to save more. Encourage people to chase yield in risky investments rather than safe deposit accounts. Put even more pressure on bank lending margins.

The race to the bottom continues. While the £ in our pockets becomes ever worthless.