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Bank of England Reduces Bank Rate by 0.25 Percentage Points to 5.0%

JF77
JF77 Posts: 303 Forumite
in Mortgages & endowments
Bank of England Reduces Bank Rate by 0.25 Percentage Points to 5.0%
Excited for Florida - May 2012 :rotfl: :rotfl: :rotfl:
«13

Comments

  • BenL
    BenL Posts: 3,189 Forumite
    Industry analysts advise customers on variable rate mortgages could be dissapointed (when their bank does not pass on the cuts).

    Probably only current tracker customers will be happy.

    The banks will use this to shore up their balance sheets, money market rates will probably continue to rise.

    My savings account will probably be reduced in rates by the end of the day.

    Bad news
    I beep for Robins - Beep Beep
    & Choo Choo for trains!!
  • Kez100
    Kez100 Posts: 2,236 Forumite
    Good news for me. Bad news for my fixed income parents.

    Shows how independant the BOE is. Not.
  • dunstonh
    dunstonh Posts: 121,418 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If the BoE wasnt independent then you would probably have seen a cut of 0.5 or even 1% giving a short term gain but long term pain.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Andyfonics
    Andyfonics Posts: 3 Newbie
    Excellent News. Does this mean my mortgage payments will come down?
  • minimike2
    minimike2 Posts: 2,210 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If you are on a base rate tracker yes.

    Woolwich have announced the are to reduce thier SVR by the full 0.25%.

    Well done them!
  • Markyt
    Markyt Posts: 11,864 Forumite
    Andyfonics wrote: »
    Excellent News. Does this mean my mortgage payments will come down?

    Trackers will. SVR's might, but is unlikely. Savings rates will fall. Inflation will continue to rise. Economy seperates further and we end up in a right mess.
  • neas
    neas Posts: 3,801 Forumite
    indeed this drop is stupid... they fiddled the inflation figures... to 2.2%... When we all know your petrol isnt rising at 2.2%,, you food bill roose more thsn 2% your mortgage rose more than 2% you energy bills rose by 7-15%, your council tax rose by 4%..

    And... Your pay rose by... 2-4%... Not good eh? Economy is heaing up the creek without a paddle... So much for Great Britain.. nothing great about it now.
  • lisyloo
    lisyloo Posts: 30,113 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    your mortgage rose more than 2%

    You may well know this already but housing costs are not included in CPI.
  • therealdelboy
    therealdelboy Posts: 38 Forumite
    Phew !! Nice one for those of us on Base Rate trackers !! Saves me about £40 per month
  • minimike2
    minimike2 Posts: 2,210 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Inflation hasnt been advertised as 2.2% neas. BoE are quite open that is 2.5%. Petrol is an anomoly as it has other factors that dictate its price, like the price of crude and the fuel duty multiplier and the cost of bills have other factors other than inflation influencing them. BoE might be muppets but they arent to blame for everything...
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