Rates.... wil they wont they?

dannyboycey

Running_Horse wrote: »

Are you saying companies would benefit from a rise in interest rates?

Anyone with a degree of intelligence knows this is not true.

As opposed to a recession? As a business owner, I know which I'd choose.

You said that you are making overpayments.... well good for you. I wonder how big these overpayments would be if your household income stopped as a result of job losses?

Anon

Nationwide and Halifax have definitely dropped their SVRs from 1st January for existing customers and apparently from today for new (I posted text of press releases on http://forums.moneysavingexpert.com/showthread.html?t=622095).

Anon

Running_Horse

dannyboycey wrote: »

As opposed to a recession? As a business owner, I know which I'd choose.

The British Chamber of Commerce disagrees with you.

http://www.euro2day.gr/articlesfna/50477428/

dannyboycey wrote: »

You said that you are making overpayments.... well good for you. I wonder how big these overpayments would be if your household income stopped as a result of job losses?

A recession would be more likely without a rate cut.

PJD

dannyboycey wrote: »

Am I completely missing the point or are they not supposed to control inflation!?!?!?

I guess that's gone right out of the window.

That's what I was thinking?

I don't understand why the hell they've done this?

One reason I heard was to stop the 'credit crunch' - surely this will encourage people to spend more and get further into debt?

MidTwentySomthing

PJD wrote: »

One reason I heard was to stop the 'credit crunch' - surely this will encourage people to spend more and get further into debt?

Depends if the banks pass on the cuts.

budget_counsellor_shaz

At least my mortgage rate should go down after Christmas.......:j

I don't know if this is enough and will make any difference to the confidence in the housing market though

Hopefully it won't make too much of a difference. I would like my children to be able to afford a house sometime soon:rolleyes:

dannyboycey

Running_Horse wrote: »

A recession would be more likely without a rate cut.

A cut is merely a delaying tactic or 'short-term fix', which will ultimately exacerbate credit problems further down the line. A recession in my view is now unavoidable. Gordon's miracle economy was a pack of cards that had to come tumbling down at some point as it was purely based on irresponsible borrowing and lending. The sooner it collapses, the less damage there will be. He'll undoubtedly use the BOE as a scapegoat - throw in the words 'credit crunch', 'global downturn' and 'HIP's' and you have the perfect excuse as to why none of this could possibly have been his fault!

free4440273

Inflation figures out next week: let me be the first to congratulate the BofE for taking steps to combat inflation. Three cheers...:rolleyes:

DawnW

It will be interesting to see if the cut makes much difference overall to the mortgage market. It seems that, with the credit crunch and LIBOR rates that some mortgages depend on, that it may well go beyond the Bank of England's influence. It might help some remortgagers (not sure if this is the right term) in the immediate term though, and make people feel all is ok so go and spend away on those credit cards for Xmas... I won't be joining them!

wolvoman

The BoE's remit is inflation.

Didn't they issue an inflation report a couple of weeks ago that said they expected inflation to be maintained within their target range using a drop in interest rates over the next 12 months? In which case if they didn't follow that course of action with interest rates then inflation would undershoot it's target.