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Am i being too cynical?...

...anybody else think that savings rates have been cut recently so if a rate rise is announced tomorrow they can put the rates back up to what they were a few weeks ago? 

Comments

  • masonic
    masonic Posts: 29,619 Forumite
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    edited 2 August 2023 at 8:21PM
    I'm earning a higher rate of interest on my savings than I was last week, and have seen several increases through July. Top of the pots has regularly seen accounts drop off due to new accounts being launched paying ever higher rates.
  • Bigwheels1111
    Bigwheels1111 Posts: 3,272 Forumite
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    It’s looking like November last year, 2 or 3 boe base rate rises but interest rates dropped.
  • masonic
    masonic Posts: 29,619 Forumite
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    edited 2 August 2023 at 9:36PM
    Could you give an example of a variable rate account where the rate has been reduced in the past few weeks? Only variable rate accounts "pass on" base rate rises to savers.
  • coastline
    coastline Posts: 1,662 Forumite
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    edited 2 August 2023 at 9:57PM
  • Top rate fixed rate bond few weeks ago was arpun 6.2%. Now 6.05%. 
  • masonic
    masonic Posts: 29,619 Forumite
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    edited 2 August 2023 at 10:02PM
    Top rate fixed rate bond few weeks ago was arpun 6.2%. Now 6.05%. 
    Fixed rates are linked to expectations for future interest rates, so would be expected to fall when rates are predicted to be lower over the period of the fix. As coastline has linked above, there has been a fall in expectations. I doubt this has anything to do with "preparing" for the next MPC meeting as fixed rate providers need not change the rate of any existing customer following a rise in the base rate.
    Meanwhile the top easy access rate over the past 4 weeks have been: 4.36%, 4.51%, 4.53%, 4.63%
  • grumbler
    grumbler Posts: 58,629 Forumite
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    edited 2 August 2023 at 10:35PM
    Top rate fixed rate bond few weeks ago was arpun 6.2%. Now 6.05%. 
    And?
    Fixed rates reflect the average rates they expect over next year/two/three etc. At the peak fixed rates are lower than instant access rates because the latter are expected to drop. When  getting close to the top, easy access rates still grow, but fixed rates start dropping.
    This is just common sense.
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