rate cut and the housing market ...

Anon

MidTwentySomthing wrote: »

I reckon they know the housing market is dead, they know any cuts won't be pased on by the lender,

They already have been passed on by Halifax and Nationwide (and within a short time of the cut announcement) therefore they perhaps displayed a lack of knowledge of what the response would be, based on what you said ...

Anon

MidTwentySomthing

Yes it does seem to be a bit of a psycological battle of wits. If the BoE wrongly presumed that they would not be pssing on the rate cuts this means there is even less scope of any more rate cuts.

I know Halifax annouced it didn't realise that Nationwide did.

However: Those on fixed rates will not be affected and for those coming off fixed rates a mortgage payment increse is still very much on the cards and will come as little consolation.

The only ones likeley to benefit are those on tracker rates (tracking the BoE rates and not the ones the banks set).

codger

The rate cut is an exercise in appearances.

It's not going to affect the substance of an over-heated housing market and it's not going to do anything about inter-bank confidence.

And UK inflation is going up, not down.

The BoE knows that the obscenely cheap money that it stupidly allowed to go into fuelling the UK housing boom ain't coming back.

It screwed up then. It isn't about to do so by successively lowering interest rates to those levels again And anyway: it's too late. We may not be doomed, Captain Mainwaring. But the fun times are certainly over.

telfordwhite

codger wrote: »

It screwed up then. It isn't about to do so by successively lowering interest rates to those levels again And anyway: it's too late. We may not be doomed, Captain Mainwaring. But the fun times are certainly over.

Some financial bod on the radio seems to think we will have successive cuts in Feb and May next year taking base rate down to 5%

MidTwentySomthing

Did he give reasons why?

dannyboycey

Running_Horse wrote: »

Like it or not interest rates are now on the way down.

And about time too.:T :j :beer: :rotfl:

Can you please enlighten us as to why lowering interest rates today was a wise decision for the UK economy? I'm afraid you are very much in the minority.

telfordwhite

MidTwentySomthing wrote: »

Did he give reasons why?

I only caught the headline quote clip on the news.

pinkshoes

I think the BOE will do anything they can to prevent an economic crash, which is quite likely if the housing market crashes, and then being able to get a mortgage or not will be the least of your worries because alot of people will have to fight just to keep their jobs.

ivegotabig1

This whole problem has been augmented by the BOE in the first place !!... Reducing rates too low too quickly in order to jump start the economy !!!
But the Economic Sports car it helped create is not far off blowing its engine with merv at the wheel !!! But the passengers have enjoyed the ride so much they cant see why it has to slow down & want the ride to go on & on !! They want it both ways...Sorry ladies & gents that aint gonna happen !! The longest growth gravy train is at an unessesarily abrupt end !! ..& the Driver is partly to blame

ivegotabig1

This whole problem has been augmented by the BOE in the first place !!... Reducing rates too low too quickly in order to jump start the economy !!!
But the Economic Sports car it helped create is not far off blowing its engine with merv at the wheel !!! But the passengers have enjoyed the ride so much they cant see why it has to slow down & want the ride to go on & on !! They want it both ways...Sorry ladies & gents that aint gonna happen !! The longest growth gravy train is at an unessesarily abrupt end !! ..& the Driver is partly to blame