MSE News: UK base rate decision looms - what it means for you

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The Bank of England is widely predicted to increase the base rate from 0.25% to 0.5% today, in what would be the first rate rise in over a decade...
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'UK base rate decision looms - what it means for you'
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  • george4064
    george4064 Posts: 2,817 Forumite
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    #BoE hikes to 0.50%, with 7-2 in favour on MPC.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2021 - #027 £15,268 (76%)
  • djpailo
    djpailo Posts: 550 Forumite
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    Finally, somewhat good news for savers. Still a far cry from over a decade ago though...
  • Malthusian
    Malthusian Posts: 10,975 Forumite
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    djpailo wrote: »
    Finally, somewhat good news for savers. Still a far cry from over a decade ago though...

    The mythical pensioner who lives off the interest from savings accounts? I'm not sure they'll be breaking out the champagne at the interest rate returning to the same rock-bottom level it's been at for 7 years.

    The Bank of England raises interest rates when inflation goes up, and cash will always be eroded by inflation. Is it good news when you turn down your street and see fire engines parked outside your house? On the one hand, it's good news that they're there to put the fire out. On the other hand, your house is on fire.
  • pearl123
    pearl123 Posts: 2,056 Forumite
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    It's about time too! A decade of poor rates.
  • djpailo
    djpailo Posts: 550 Forumite
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    Malthusian wrote: »
    The mythical pensioner who lives off the interest from savings accounts? I'm not sure they'll be breaking out the champagne at the interest rate returning to the same rock-bottom level it's been at for 7 years.

    The Bank of England raises interest rates when inflation goes up, and cash will always be eroded by inflation. Is it good news when you turn down your street and see fire engines parked outside your house? On the one hand, it's good news that they're there to put the fire out. On the other hand, your house is on fire.

    I genuinely have no idea what you are talking about. :j
  • talexuser
    talexuser Posts: 3,499 Forumite
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    I think the point made is 0.5% is only marginally better than 0.25% in real terms when even best buy instant savings are returning less than half the rate of inflation, and most savings accounts for most people (not necessarily readers here) are losing quite a lot every year.
  • 2010
    2010 Posts: 5,371 Forumite
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    Cheap money high property prices.
    People are forking out half a million plus for a house that`s worth about £200k because of cheap borrowing.
  • jimjames
    jimjames Posts: 17,668 Forumite
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    djpailo wrote: »
    Finally, somewhat good news for savers. Still a far cry from over a decade ago though...

    The best savings rates have zero link to the base rate so this will have absolutely no effect on the rates I'm getting. Just the same as the rate cut last year had no impact either.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • RG2015
    RG2015 Posts: 5,921 Forumite
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    djpailo wrote: »
    Finally, somewhat good news for savers. Still a far cry from over a decade ago though...
    People are talking about good news for savers. Can somebody post here with details of any savings rate that is increasing after today's decision
  • footyguy
    footyguy Posts: 4,157 Forumite
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    Will there be another rise?

    There's not likely to be another one this year.

    You mean no rate rise again next month? (after that, it'll be next year)
    I think you can be sure of that
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