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

sarkin

good news for people on tracker rates bad news for anyone that needs to buy food or fuel

maveli

sarkin wrote: »

good news for people on tracker rates bad news for anyone that needs to buy food or fuel

50% of my earnings goes into mortgage. Food and fulel only 15-20 percent. So anyr eduction on the 50 % is a good news for me.

neas

so whats the point of CPI then?

To hide the real inflation?

Inflation figure should represent how much things have increased for an average person... not leave out things... (they leave out the big hitters to reduce inflation... its stupid).

My wage wont rise at the rate of true inflation.. so every year people get worse off, get taxed more... so why is this good?

zicowoods

Where can I find if my SVR has followed the BOE rate?

Currently with Progressive (Northern Ireland only lender i think)

Is there an extensive list anywhere?

First post!

Thanks

lisyloo

Yep at the moment people's wages are falling in real terms partly due to things like globalisation whihc are outside the control the BOE.
The BOE have a very blunt instrument to deal with a very complex economic picture and they can't be held responsible for everything.

On an altruistic level I think it's good that people here are a bit worse off in return for people in REAL poverty i.e. not enough to eat, being better off.

You might be a bit miffed if your getting a bit worse off but there are very few people in the UK who genuinely don't have enough to eat.
If you are not mentally ill in the UK then there is safety net.
Unfortunately those who are mentally ill can fall through the net and end up on the streets which is regrettable but largely speaking we are very rich compared with at least 6 billion other people.

I'm not trying to sound pompous but I find it helpful to thin of how lucky we are.
Imagine your life is represented by a lotter ticket in a lottery of 8 billion (one for each life on the planet).
Would you through yours in for a random ticket?

If you live in the UK and have food, education, health system and a roof over your head then you are extremely wealthy on a global level.
Worrying about slightly dropping lifestyles and getting enough exercise, maximising your investments and not paying too much tax, makes you extremely lucky as opposed to those that worry about food and shelter.

Not trying to sound popmpous and judgemental it just often helpd me to reflect on the global reality of the situation and get some perspective.

minimike2

The BBC have reported that apparently most of the major banks have passed on the full 0.25% on the SVR, but I suspect this will be short lived and we will see them go up again.

lisyloo

Where can I find if my SVR has followed the BOE rate?

You could try your lenders website, but you will need to be a little patient.
Typical follow on times are 30 days and it can take longer to update the websites.

Often sites like this do articles listing major lenders but I haven't heard of yours so I wouldn't expect it to appear. I think you may have to check directly.

http://www.thisismoney.co.uk/news/article.html?in_article_id=439432&in_page_id=2&ct=5

Sunday_Morning

BoE aren't to blame for the current inflation running in excess of 4% (based on what what really counts - not what Messrs Brown & Co would have us believe.)

However I am confused. As I understand it the Base Rate is a mechanism to be used by the Bank for the purposes of controlling inflation. Even using the "preferred" method of measuring inflation, at 2.5% it's still way ahead of the target rate and I've seen no expectancy of it reducing in the future, rather the opposite.

So why the reduction?

minimike2

Confidence and ti try to prevent recession I guess.

lisyloo

Even using the "preferred" method of measuring inflation, at 2.5% it's still way ahead of the target rate and I've seen no expectancy of it reducing in the future, rather the opposite.

I think inflation is expect to fall back.
Read here for full details and timescales.

http://www.bankofengland.co.uk/publications/inflationreport/ir08feb5.pdf