Poll - What do YOU THINK the MPC should do on 7th Feb?

Paul_Herring

dannyboycey wrote: »

make people realise they have to face up to their debts and stop borrowing.

No it wouldn't.

If they have their head in the sand, then they won't pay any attention to any change be it positive or negative.

And given that most debts are on interest rates that aren't affected by the BoE base rate (personal loans, overdrafts, CC's etc.,) then doubly so.

Even most mortgage SVRs (and by implication, savings rates) aren't really affected by the BoE rate - they're more closely tied to the LIBOR rate, over which the BoE has little influence. (Witness the recent/current sub-prime fiasco and its knock-on effects.)

dannyboycey

Paul_Herring wrote: »

Even most mortgage SVRs (and by implication, savings rates) aren't really affected by the BoE rate

Tell that to someone who had a mortgage during a 10%+ base rate.

Paul_Herring

danny wrote:

Paul wrote:

Even most mortgage SVRs (and by implication, savings rates) aren't really affected by the BoE rate - they're more closely tied to the LIBOR rate,

Tell that to someone who had a mortgage during a 10%+ base rate.

Hmm - lets see - September '91.

BoE Base rate: ~10%
LIBOR: ~10%

You aren't convincing me.

Running_Horse

dannyboycey wrote: »

Are they not supposed to keep inflation in check? Does cheap, irresponsible lending to people with less than perfect crdit scores help, whilst punishing hard working savers?

Most people borrow what they can afford, a few don't. I didn't realise it was the job of the Bank of England to punish me for the irresponsibility of a foolish minority. What a strange way to run an economy.

dannyboycey

Running_Horse wrote: »

Most people borrow what they can afford

A contradiction in terms!

I'd personally take the opposite view.

Guy_Montag

Holding, I think, is equivalent to raising if everyone else is dropping. So I've voted for a hold. Economy is going pear-shaped - we need to pay back our debt. On t'other hand inflation will start rising now & the BoE need to control inflation & let the govt. deal with the economy.

Arcaine

I think given the numbers that came out yesterday the BOE will probably lower the rates 0.25%. I think they will be cautious on inflation.
However, I think inflation will start to fall as America slows and drags the rest of us with it. Once they stop spending the demand for oil and other commodities will start to fall, hopefully bringing prices down a little. I wonder if rather than inflation, we will be talking about deflation by the end of the year.

Running_Horse

dannyboycey wrote: »

A contradiction in terms!

I'd personally take the opposite view.

I can afford my mortgage payments which are a lot less than rent.

Unless you have some other system for people like me to buy a house.

ds1980

Still don't quite understand the doom mongers sentiments. What good would raising rates do? Its not the rates that will hold down inflation really is it.

What exactly is inflation anyway? If a pint of milk costs 50p and inflation is 3 % does that mean that milk will be now 51.5p in essence? If i go down the road to aldi then milk is 40p so inflation is negligible.

Same for petrol etc etc etc etc etc.

They will and should cut.

I fail to see its the people who got themselves into troubles fault. Is it not at the hands of the people whom fed them? THese companies will make milliions of pounds still this year. How can shell make £13billion and we still pay £105 a litre of petrol? Think people need to get priorities staright and sort out their own problems rather than forecasting and hopinig others fall fowl. If the country is in a recession we all feel it. If we are putting rates up to help the few "sensible" ones that that is completly the wrong thing to do.

Majority rules in this country and thats the way it should be. If people didnt take risks or borrow we wouldnt have any of the things we take for granted.

For what its worth I couldnt care less what they do!

Im off down rovers for a pint and to bring the world to rights with walter and his pet tortoise.

Guy_Montag

ds1980 wrote: »

Still don't quite understand the doom mongers sentiments. What good would raising rates do? Its not the rates that will hold down inflation really is it.

What exactly is inflation anyway? If a pint of milk costs 50p and inflation is 3 % does that mean that milk will be now 51.5p in essence? If i go down the road to aldi then milk is 40p so inflation is negligible.

Excellent, by going to Aldi you're putting downward pressure on prices. But why are you going to Aldi, could it perhaps be because you've not had a pay rise & your mortgage has just gone up? Those are the effects of increasing rates, so it does have an effect on inflation.

Same for petrol etc etc etc etc etc.

Actually if you look around you will see that petrol prices in most areas are fairly similar. That's because the cost of petrol is mostly made up of tax & crude oil costs. Both of which are high.

They will and should cut.

Why?

I fail to see its the people who got themselves into troubles fault. Is it not at the hands of the people whom fed them? THese companies will make milliions of pounds still this year. How can shell make £13billion and we still pay £105 a litre of petrol? Think people need to get priorities staright and sort out their own problems rather than forecasting and hopinig others fall fowl. If the country is in a recession we all feel it. If we are putting rates up to help the few "sensible" ones that that is completly the wrong thing to do.

So you are suggesting that people should no longer take any responsibility for their own actions? I can't see that is a terribly good solution to the country's problems.

Majority rules in this country and thats the way it should be. If people didnt take risks or borrow we wouldnt have any of the things we take for granted.

Actually the majority doesn't rule in this country, which I must say is a bloody good thing. If they did we'd probably have public executions.

For what its worth I couldnt care less what they do!

Im off down rovers for a pint and to bring the world to rights with walter and his pet tortoise.

Jolly good, make mine a real ale. Not fussed which.