Interest rates cut to 0.25% from 0.5% discussion

katejo

I thought Miras stopped well before 2000. I bought my first flat in 1993 and don't think I had Miras for 7 years.

digannio

Aren't you concerned that Company profitability is falling and as a consequence dividend pay outs are under pressure. Every lever pulled impacts somewhere else.

Hence go for mixed assets, low volatility, globally diversified and cautious. It's not the end of the world nor of investing. People's savings earning pitiful amounts of interest over long periods of time are in a dangerous place.

bristolleedsfan

katejo wrote: »

I thought Miras stopped well before 2000. I bought my first flat in 1993 and don't think I had Miras for 7 years.

https://en.wikipedia.org/wiki/Mortgage_interest_relief_at_source

Glen_Clark

gadgetmind wrote: »

I'd like to see further streamlining of the benefits system but there is also scope for more infrastructure investing.

Unfortunately the benefits bill is likely to rise no matter what as unemployment ratchets up.

Rock and a hard place.

Biggest problem is that because benefits have to cover housing costs and wages don't, a lot of people are better off on benefits.
Inflating house prices with taxpayer subsidised loans only makes it worse

Glen_Clark

bristolleedsfan wrote: »

https://www.theguardian.com/business/2016/apr/15/george-osborne-says-brexit-will-drive-up-interest-rates

Typical Osborne. Cameron couldn't sack him because he had successfully organised Cameron's party leadership campaign. Fortunately Theresa May didn't owe Osborne that much loyalty. So at least something good has come out of Brexit

jimjames

ManofLeisure wrote: »

Crikey, I would have thought that was obvious lol.

The smaller your savings the higher the rate you can get. Is that obvious? I'm struggling to understand your point

tommysaver

Perhaps premium bonds and a couple of lottery tickets a month is the way to go..

Pincher

Does anyone actually think going from 0.5% to 0.25% makes ANY difference?

Mark Carney might as well be a computer generated spokesman.
All he does is to come out to say something soothing and re-assuring.

We need to do a s!ance, to channel Margaret Thatcher's spirit into Teressa May. She can then declare a Falklands War on somebody, to rally the nation.

We then create a new service industry based on pleasant euthanasia. The old are sitting on a vast housing stock, and financial assets. We persuade them to die early, by offering Fantasy Island style exit packages, for lots of money.

Live and then die like Hugh Heffner.
I hear Hugh has sold Playboy Mansion, so we shampoo the whole thing and air it to get rid of the old sperm smell, and charge £100,000 a night.

We build the Pearly Gates, hire actors to play Saint Peter to welcome you to Heaven. The clouds are nerve gas that makes you go to sleep, and then we snuff you.

Release housing stock and release money into the economy. QE Pincher style.

Glen_Clark

gadgetmind wrote: »

1) Postulate a level of savings that meets the "don't have much" condition.
2) Show what annual income this would have produced at 0.5% base rates.
3) Repeat exercise at 0.25%
4) Compare and contrast with said person's pension income and so show that it matters.

The 0.25% cut is probably less significant than the £100bn they propose to print and throw at the banks - meaning they won't need saver's retail funds so savings rates are likely to fall more than 0.25%. Worse for those who really don't have much and are saving for a house, is that £100bn thrown at strictly limited housing stock, alongside taxpayer house price subsidies like Osborne's cynically titled 'Help to Buy', keeps house prices unaffordable.
(Which keeps up the Housing benefits bill as many people, whether working or not, and they may be better off not working as benefits have to cover housing costs wheras wages don't, can't afford housing without housing benefit)
Hence the doubling of the 300 year old National Debt in 6 years.

lisyloo

Does anyone actually think going from 0.5% to 0.25% makes ANY difference?

It made a difference and that's a fact. Sterling dropped and equities went up.