Cpi 1.8%

Moorepart

Just announced on Bloomberg CPI has fallen to 1.8%

Words fail me:mad:


http://www.bloomberg.com/apps/news?pid=20601102&sid=ar40Ad7Xq.fQ&refer=uk

dannyboycey

Interest rate cuts ahead... There's a surprise.

pollyanna24

Cor blimey! I'm struggling to understand all this. For ages, people were going on about rates going up and up. Why would they be cutting them now? Sorry, I only know as much about the economic situation as to what is going to affect me, prob not the best way to be?

So they will cut rates, but make borrowing harder for people? Or just carrying on lending willy nilly? Me no understand?

Melissa177

Particularly nice that they've fixed the Student Loan rate at March's (4.8%) level this year....

Moorepart

pollyanna24 wrote: »

Cor blimey! I'm struggling to understand all this. For ages, people were going on about rates going up and up. Why would they be cutting them now? Sorry, I only know as much about the economic situation as to what is going to affect me, prob not the best way to be?

So they will cut rates, but make borrowing harder for people? Or just carrying on lending willy nilly? Me no understand?

Global pressure will start to be blamed more but I cant see how the BoE can keep interest rates much below 10% over the medium term. The only other option would be to try and inflate which would lead quickly to hyperinflation as even with rising IRs there is already built in inflation in the system.

What options have they really got?
It seems they are between a rock and a hard place and the rock is from the north.

In the shortt term will try and steer the middle course and try and keep things afloat using artificial measures. The longer they do this the worse it will be.:rolleyes:

Mr._H_2

Moorepart wrote: »

:mad:

Why the :mad: face? Are you a saver?

I'm pleased with this news. Means it's likely that interest rates won't change for a while.

CB1979_2

keep it going for another 10 months, then I'll STR! lol

Moorepart

Mr._H wrote: »

Why the :mad: face? Are you a saver?

They should be saving the money for BTL speculators and subprime mortgage companies.

It's a disgrace! These people have gambled their money away a bank, rather than sink there savings into a risk free investment like property or the stock market, now we are supposed to bail them out just because they were unaware of NR's complete reliance on the LIBOR rate.

This government is actively encouraging reckless saving and I'm thoroughing sick of it. :mad::mad:

Mr._H_2

Moorepart wrote: »

Mr._H wrote: »

Why the :mad: face? Are you a saver?

They should be saving the money for BTL speculators and subprime mortgage companies.

It's a disgrace! These people have gambled their money away a bank, rather than sink there savings into a risk free investment like property or the stock market, now we are supposed to bail them out just because they were unaware of NR's complete reliance on the LIBOR rate.

This government is actively encouraging reckless saving and I'm thoroughing sick of it. :mad::mad:

Regardless of what you think of BTLers, very few homeowners own their house outright and have this thing called a "mortgage". I'd consider myself to be a "saver" at heart, but once you take account of my mortgage, I'm not (amount borrowed on mortgage is bigger than savings - this is hardly abnormal). I like to save up for stuff rather than buying on credit, but you can't really do that with a house, can you?

You didn't actually answer my question though. Why are you so mad? (what you've said doesn't seem to have any bearing on the inflation rate)

hgllgh

If the BoE cut rates now then are they not giving a green light to a worsening credit/debt/mortgage boom, eventually leading to an even bigger crash than the one we were about to have anyway ?

They did it before (2003/4) so chances are they will do it again?

In any case, why should the BoE bail out muppets like Northern Rock.
If a lender gets in to trouble due to its own stupidity then they should pay the price. Otherwise, what happens is that banks will effectively get the green light to risk these type of home loans safe in the knowledge that they will be bailed out. This whole problem has been caused by retail banks fighting for market share. If there is no risk to them then they will continue offering high multiples, longer term mortgages etc etc

ds1980

Moorepart wrote: »

Global pressure will start to be blamed more but I cant see how the BoE can keep interest rates much below 10% over the medium term. The only other option would be to try and inflate which would lead quickly to hyperinflation as even with rising IRs there is already built in inflation in the system.

What options have they really got?
It seems they are between a rock and a hard place and the rock is from the north.

In the shortt term will try and steer the middle course and try and keep things afloat using artificial measures. The longer they do this the worse it will be.:rolleyes:

general election = low interest rates laso a new bank holiday me reckons!