That time of the month - Interest Rates! [Feb 08]

SquatNow

If the MPC gave a crap about the UK economy they'de raise by 0.25%.

So that's a 0.25% CUT then.

VFR-Rider

I hope they don't cut again, is it really helping? All it does is hurt my savings.

(I voted cut .25)

ManAtHome

Down a quarter - February is a "rate moving month" (yeah, I know it should go up now LIBOR has dropped back to normal, but what the hell, half-term sales on the horizon...).

6-3 for a cut, one vote for a 4% cut (could just pop over once a year and leave a dozen "CUT CUT CUT" cards).

Cozworth806

The problem is the amount of debt able to be lent and the lack of savings. If taxes were slashed and savings rates increased then we would be able to see a real increase in the proportion of money that is saved, or at least money that is put away.
Labour have raised taxes & government spending, and that has meant interest rates have had to be slashed to keep growth going.
Fiscal rather than monetary policy, despite Gordo making the BoE "independent"

mr.broderick

I voted for a 0.5% cut, this is the month that changes everything.
Knew i shouldn't have fixed that mortgage in december, i wanted to go for a tracker but wife didn't have the balls.

phlash

I voted HOLD. But I am sure I'm wrong.

Inflation is about to take off, at least it would "statistically" if CPI wasn't such a blunt tool, so easily massaged and formed into whatever sexy figure is required.

wolvoman

I'd say it's a 25% chance of a 0.5% drop and a 75% chance of a 0.25% drop. And several more to come this year - 4% by year end I think.

poppy10_2

mr.broderick wrote: »

i wanted to go for a tracker but wife didn't have the balls.

Can't really blame her for her biological shortcomings, can we?

ManAtHome

If it is 4% by the end of the year, expect to have an almost perfect record if you want to borrow more than a tenner. Banks have been writing off quite a heap in bad debts (and/or CDOs, and/or SIVs) - each billion is 8 to 10 billion they can't lend out, so can't see them sloshing 4% loans around if they're having to pay over 6% (or take the BoE penalty rate and consequent 50% drop in share price).

Not surprising that BoE-linked rates have been going up over the last few weeks.

mr.broderick

ManAtHome wrote: »

If it is 4% by the end of the year, expect to have an almost perfect record if you want to borrow more than a tenner. Banks have been writing off quite a heap in bad debts (and/or CDOs, and/or SIVs) - each billion is 8 to 10 billion they can't lend out, so can't see them sloshing 4% loans around if they're having to pay over 6% (or take the BoE penalty rate and consequent 50% drop in share price).

Not surprising that BoE-linked rates have been going up over the last few weeks.

I really like your posts but disagree with this one.
Trust me this time next year there will be 4.75% loan flyers coming through your door sandwiched in your local paper.