Interest Rate move - Feb 08

Generali

aardvaak wrote: »

I wondered how long it would take the pr*ts to start speculating - why on earth do you want a cut!

Because the international economy is about to go down the Swanee. Don't you read the papers?

Just because the BoE starts cutting rates, it doesn't mean that house prices wil rise in some sort of Pavlovian response. Interest rates of 0% didn't do much for Japanese house prices.

My feeling is that we've got a liquidity trap coming and this is a desperate attempt to avoid it. I hope they do. House prices have been too high for too long but that's not a good reason to wish a depression on a nation.

Jennifer_Jane

Well I'd like an interest rate cut - I would hope it would boost the stock market, and stimulate the economy. Plus if it reduces the strength of the Pound that would help with the Company I work for whom the US is 50% of their markets (so that would help with my pay increase and bonus), and I have savings in a different country - so would prefer a weaker Pound.

Yes, I think I'd be glad of lower interest rates.

Regards
Jen xx

gazza975526570

Erm probably coz its a forum and people are free to start threads on anything?!

Whats the problem?

aardvaak

Generali wrote: »

Because the international economy is about to go down the Swanee. Don't you read the papers?

Just because the BoE starts cutting rates, it doesn't mean that house prices wil rise in some sort of Pavlovian response. Interest rates of 0% didn't do much for Japanese house prices.

My feeling is that we've got a liquidity trap coming and this is a desperate attempt to avoid it. I hope they do. House prices have been too high for too long but that's not a good reason to wish a depression on a nation.

As long as I earn my living some people are trying to wish it away!

Gorgeous_George

aardvaak wrote: »

Why start the thread then!

To prompt discussion on errrmmm, a dicussion forum?

aardvaark = agracooble = one IP address

GG

aardvaak

Jennifer_Jane wrote: »

Well I'd like an interest rate cut - I would hope it would boost the stock market, and stimulate the economy. Plus if it reduces the strength of the Pound that would help with the Company I work for whom the US is 50% of their markets (so that would help with my pay increase and bonus), and I have savings in a different country - so would prefer a weaker Pound.

Yes, I think I'd be glad of lower interest rates.

Regards
Jen xx

What about my pay increase?

brit1234

Gorgeous_George wrote: »

Well, larger cuts would be nice for mortgagees. My mortgages are quite modest with a residential at 1 x joint income and BTL covered by less than 50% of rental income. Both on trackers.
GG

Am I getting you right, your buy to let rent only covers 50% of the mortgage?

Scary stuff, I've heard there are a lot of landlords subsidising rent because the rents don't cover the mortgage. It is for this reason that we are going to have a quicker and larger crash due to the vulnerability of the buy to let sector.

As for interest rates I think they will be held or cut by 0.25% In the same speech Merv talked about inflation being well above government targets this year indicating there won't be many rate cuts.

However even if there is a cut it is unlikely to stop house prices falling just like in the USA market. Thats if the banks even pass the cut on due to their cash shortages.

Generali

aardvaak wrote: »

What about my pay increase?

A bit of insightful analysis as to why rates cuts could be good/bad/indifferent might be more useful and interesting than yet another post alluding to how you live off the interest on your savings.

ixwood

Brit, I read it that 50% of his rent covered the mortgage.

Gorgeous_George

brit1234 wrote: »

Am I getting you right, your buy to let rent only covers 50% of the mortgage?

I typed it really slowly as well.

:rotfl:

GG

ps. Mortgage about £200, rent over £400. Mortgage sum invested in cash ISAs or offset against my residential mortgage.