Nationwide Fixed Rate E-Bond Up to 6.4%

bristolleedsfan

There we go people who were posting saying that Nationwides fixed rates would fall due to the last base rate decrease.

http://www.nationwide.co.uk/default.htm

The_Fiddler_2

Will it climb any higher?

bristolleedsfan

The_Fiddler wrote: »

Will it climb any higher?

Nationwide never pay any more than they need to IMO, savings rates are going up all over the place. :beer:

If the B.O.E bail out the banks as expected then savings rates will fall IMO, i saw a report today stating that the LIBOR is understated so as to hide the banks liquidity problems.

Libor credibility questioned as crunch deepens
Source : Daily Telegraph - 17.4.08.

The British Bankers' Association has brought forward a review into how it sets the pivotal London Interbank Offered Rate amid mounting concerns over the credibility of the measurement. The association yesterday revealed it was re-assessing how it calculates Libor - a benchmark measurement that filters through the economy, affecting mortgage and other interest rates across the lending system. Despite widespread concerns that Libor has blown out to levels significantly above base rates, economists fear banks are understating the rates at which they are prepared to lend to each other,
Quote:
downplaying liquidity problems.

Paul_Herring

The_Fiddler wrote: »

Will it climb any higher?

Well it's going to have to if they want to divert any of my savings from Icesave.

Paul_Herring

bristolleedsfan wrote: »

Libor credibility questioned as crunch deepens
Source : Daily Telegraph - 17.4.08.

[...]The association yesterday revealed it was re-assessing how it calculates Libor - a benchmark measurement that filters through the economy, affecting mortgage and other interest rates across the lending system.

"We don't like the numbers coming out so we'll be changing the calculation." Am I reading that correctly?

In much the same way that past governments have changed how inflation is 'calculated' (we don't like those numbers, try again)?

RayWolfe

It is a well known trait of the religious, the elderly and the conservative that nothing should change. "It was alright for my father and my fathers father, therefor it's alright for me."

bristolleedsfan

Paul_Herring wrote: »

"We don't like the numbers coming out so we'll be changing the calculation." Am I reading that correctly?

In much the same way that past governments have changed how inflation is 'calculated' (we don't like those numbers, try again)?

My personal suspicion is that after what ever bailouts occur the Banks aim will be to keep the Libor rate as high as possible as an excuse to keep borrowing costs as high as possible.

So if B.O.E goes ahead with its reported bailouts, Banks will say afterwards that the LIBOR rate is pretty much as high as it was before ( after changing the way its calculated) so we cant bring down the cost of fixed rate morgage deals etc.

Meltdown_2

Is this still the composition of the Sterling (GBP) contributor panel?

Barclays Bank plc
HBOS
HSBC
Lloyds TSB Bank plc
RBS Group

Abbey National plc
Bank of America
Bank of Tokyo – Mitsubishi UFJ
BNP Paribas
Citibank NA
Deutsche Bank AG
JP Morgan Chase
Rabobank
Royal Bank of Canada
UBS AG
West LB AG

If so, that's a heavy weighting towards 'foreign' banks.
(Yes I understand why, but ...)