Interest rates cut to 0.25% from 0.5% discussion

talexuser

bigadaj wrote: »

there's still debt that should have been written off that hasn't been.

Never has a truer word been spoken. All this pain just to prop up the banks balance sheets and pretend they did not go bust? Are we just repeating every mistake Japan made? Helicopter money made the news again and perhaps this is the time to try it since nothing else has appeared to work, a judicious amount might just sweep away the deflation risk.

chucknorris

Nick_C wrote: »

We are a rare breed but in the same club. I'm currently borrowing money from Santander at 2.5% and lending it back to them at 3% :-)

As I have a tracker mortgage, today's cut will save me about £23 a month on my mortgage payments.

But you are borrowing at 2.5%, but only getting either 1.8% (as a higher rate taxpayer) or 2.4% net (as a basic rate tax payer).

Nick_C

chucknorris wrote: »

But you are borrowing at 2.5%, but only getting either 1.8% (as a higher rate taxpayer) or 2.4% net (as a basic rate tax payer).

As a basic rate taxpayer, I'm no longer paying any interest on my savings.

Most of money is invested though, and returning far far more tHan 2.5% 😊

chucknorris

Nick_C wrote: »

As a basic rate taxpayer, I'm no longer paying any interest on my savings.

Most of money is invested though, and returning far far more tHan 2.5% ��

Ours are too, we are mainly in property, and a fair bit in shares, but I moved mostly out of cash years ago, it just isn't a good enough return (for substantial sums I mean).

Glen_Clark

chucknorris wrote: »

Ours are too, we are mainly in property, and a fair bit in shares, but I moved mostly out of cash years ago, it just isn't a good enough return (for substantial sums I mean).

Thats the past. Its the future we need to know about

Glen_Clark

talexuser wrote: »

away the deflation risk.

'Deflation Risk' is just an excuse to 'justify' money printing. The only deflation risk is if they think of another wheeze to fiddle their statistics, like counting rising house prices as 'Growth' instead of Inflation.

chucknorris

Glen_Clark wrote: »

Thats the past. Its the future we need to know about

No that isn't the past, it is my present. You can't 'know' about the future, you can only speculate.

Glen_Clark

chucknorris wrote: »

No that isn't the past, it is my present.

Property and shares doing better than cash is the past.

chucknorris

Glen_Clark wrote: »

Property and shares doing better than cash is the past.

Not by my reckoning, I'm yielding around 4% on both property and shares, OK fair enough you can beat that with some savings accounts, but you can't put substantial amounts into them. Also dividend income is much more tax efficient than savings interest.

Pincher

chucknorris wrote: »

Also dividend income is much more tax efficient than savings interest.

I am beginning to think of the 1% Income Bond interest as a pesky nuisance. It's hogging my basic rate tax band, and I have to pay 20% tax. Much better to pay 7.5% on dividends, which is more than 1% yield as well.

Still, gotta keep some ammunition in reserve, in case the stock market melts down.