Bank of England meet next Thursday

Agusya

 Bank of England meet next Thursday.The market expects the UK base interest rate to be cut from 4.25% to 4% next week. My mortgage fix term runs out on 31/8. Maybe someone here knows when banks would apply rate changes after the announcement? Ive read somewhere that it happens on the 1st of the following month. Would this be correct? thanks

ACG

Banks have been lowering their rates in the last week or 2. It seems very likely the rate will drop, but I imagine a lot of the reductions have already happened. 

Peter999_2

Hopefully they'll see sense and increase the interest rates to reduce inflation.

sheenas

Peter999_2 said:

Hopefully they'll see sense and increase the interest rates to reduce inflation.

They keep telling us this, but it’s not really true. The idea that reducing money in the individuals pockets means they have less to spend does not work. I have no idea why the Bank of England are follow a policy of inflation plus 2%. The eu have lower rates and we could simply track their rates. 

Altior

sheenas said:

Peter999_2 said:

Hopefully they'll see sense and increase the interest rates to reduce inflation.

They keep telling us this, but it’s not really true. The idea that reducing money in the individuals pockets means they have less to spend does not work. I have no idea why the Bank of England are follow a policy of inflation plus 2%. The eu have lower rates and we could simply track their rates. 

Of course it works that way, but it's not linear. There are so many variables at play.

Think of it the other way, if everybody could borrow at 0%, what do you think that would do to demand, and market prices?