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  • FIRST POST
    • MSE Guy
    • By MSE Guy 10th Nov 11, 11:14 AM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Bank of England base rate held at 0.5% again
    • #1
    • 10th Nov 11, 11:14 AM
    MSE News: Bank of England base rate held at 0.5% again 10th Nov 11 at 11:14 AM
    This is the discussion thread for the following MSE News Story:

    "The Bank today held the base rate at its historic low and decided against pumping more cash into the economy ..."

    Read the full story:
    Bank of England base rate held at 0.5% again




    This thread is not in the 'discuss house prices and economy board' as that is only open to those logged into the forum so anyone coming from the news story may not be able to see it.
Page 1
    • runninglea
    • By runninglea 10th Nov 11, 11:15 AM
    • 888 Posts
    • 1,349 Thanks
    runninglea
    • #2
    • 10th Nov 11, 11:15 AM
    • #2
    • 10th Nov 11, 11:15 AM
    'surprise surprise' to quote cilla black
    Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
    .1%) (42/100) payments made. Total paid 2019 year £1,700

    Total paid 2017 year £15,300Total paid 2018 year £13,600
    • Thrugelmir
    • By Thrugelmir 10th Nov 11, 11:20 AM
    • 63,088 Posts
    • 56,011 Thanks
    Thrugelmir
    • #3
    • 10th Nov 11, 11:20 AM
    • #3
    • 10th Nov 11, 11:20 AM
    The MPC pumped an extra £75 billion into the economy through QE last month amid signs the recovery was faltering
    Last month the BOE committed to £75 billion of QE over the following 4 months.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
  • tleefox
    • #4
    • 10th Nov 11, 11:26 AM
    • #4
    • 10th Nov 11, 11:26 AM
    Hardly a surprise.
    My debts at 11th April 2011:
    Virgin Credit Card - £1,900 £1,500 (21.1% paid off)
    Nationwide Authorised OD - £2,000 £1,500 (25% paid off)
    Student Loan - exact amount TBC but circa £5,000

    I'm on the road!
    • guitarman001
    • By guitarman001 10th Nov 11, 12:17 PM
    • 1,024 Posts
    • 534 Thanks
    guitarman001
    • #5
    • 10th Nov 11, 12:17 PM
    • #5
    • 10th Nov 11, 12:17 PM
    Borrowers being bailed out while your savings are being wiped out
    • wellused
    • By wellused 10th Nov 11, 3:11 PM
    • 1,618 Posts
    • 1,582 Thanks
    wellused
    • #6
    • 10th Nov 11, 3:11 PM
    • #6
    • 10th Nov 11, 3:11 PM
    I'm so glad my hard earned savings are being depleted in order to prop up those who borrowed recklessly.
    • adamg
    • By adamg 10th Nov 11, 4:54 PM
    • 480 Posts
    • 325 Thanks
    adamg
    • #7
    • 10th Nov 11, 4:54 PM
    • #7
    • 10th Nov 11, 4:54 PM
    I have never borrowed nor do I have savings, but i do have a very low morgage thanks
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • tagq2
    • #8
    • 10th Nov 11, 5:55 PM
    • #8
    • 10th Nov 11, 5:55 PM
    I have never borrowed [...] but i do have a [...] morgage
    I smoked but I never inhaled.
    • consumers_revenge
    • By consumers_revenge 10th Nov 11, 7:06 PM
    • 3,212 Posts
    • 1,717 Thanks
    consumers_revenge
    • #9
    • 10th Nov 11, 7:06 PM
    • #9
    • 10th Nov 11, 7:06 PM
    Wifes never had a car crash but seen hundreds ;-)
    • MiserlyMartin
    • By MiserlyMartin 10th Nov 11, 7:48 PM
    • 1,904 Posts
    • 1,361 Thanks
    MiserlyMartin
    This news should read "The Bank of England continues to decimate the value of pensioners retirement savings by keeping interest rates on hold at a historic low of 0.5%"

    I'm sick to death of it. Everyone is suffering. People can't go out and spend and the economy recover as their low interest rate policy means inflation is reducing everyones disposable income. Its a double wammy for pensioners they have even less spending income as their interest on savings is virtually nothing.

    Trouble is they think the british public are stupid, and frankly a lot of people must be or there would be at lot more fuss about 0.5% interest rates with 5.6% inflation. The MPs keep going on about 'the recovery', well there well be no recovery with this stupid inflation policy of Mervyn and his band of merry men. It should be tackled. The MPs either don't understand finance or they don't care.
    Last edited by MiserlyMartin; 10-11-2011 at 7:51 PM.
    • henrik1971
    • By henrik1971 10th Nov 11, 8:23 PM
    • 201 Posts
    • 111 Thanks
    henrik1971
    Isn't the problem though Martin, that increasing interest rates will not significantly reduce inflation, which is being caused mainly by energy and (to a lesser extent) food price increases.

    I'm a significant borrower / minimal saver, and I'm not against rates going up a little as many people are overpaying their mortages at the moment, and could probably 'absorb' a few percent increase in the base rate without it tipping them over the edge. Everyone on both sides needs to see the bigger picture, and mortgage lenders need to reduce their margins back from their historic current high levels.

    However, some people will inevitably be forced into insolvency if rates go up, some of whom are !!!!less, and some of whom are just in the wrong place at the wrong time, perhaps been made redundant, etc.

    Defaults and repossessions are painful, but how are lessons truly learned unless some consequences are experienced?
    A couple of years ago when the mortgage rescue scheme was rolled out to help distressed borrowers, I had mixed feelings about it. However, when I heard they planned to extend the scheme to cover totally irresponsible amateur buy-to-let landlords who had massively over-extended themselves, my disbelief, amazement and anger could not be measured by existing technology.....

    Another example of the !!!!less being rescued and saved from themselves by the nanny state where its not politically correct to tell people they were wrong or foolish. Just like all those shareholders years ago wanted the govt to compensate them for falls in the value of their investments. Unbelievable.
    • MiserlyMartin
    • By MiserlyMartin 10th Nov 11, 10:33 PM
    • 1,904 Posts
    • 1,361 Thanks
    MiserlyMartin
    Isn't the problem though Martin, that increasing interest rates will not significantly reduce inflation, which is being caused mainly by energy and (to a lesser extent) food price increases.

    .
    Originally posted by henrik1971
    I don't think so. Core inflation, we are told repeatedly over 2 or 3 years now, is 'expected to fall back' bringing CPI/RPI back towards target once they fall out of the measure. This obviously has proven to be total bull and is a smokescreen, the reality is that everything that is going on is inflationary. QE, low interest rates. They want to raid the pound in your pocket, they just don't want you noticing or knowing about it. So they are feeding the public bull. Add global price pressures from countries such as china etc, rising commodities its not looking that inflation is falling on its own.
  • theosnw
    Not that I'm educated about the matter but the low base rate has been a God send.

    I bought my first house at the peak of the market 3 years ago at 100% it's now worth 18k less because of the market drop but at least now I can start ploughing money into my mortgage to cut my losses.

    Most if not all the people I know do not care about the devaluing of the pension mainly because they don't see it affecting them or they have already made other arrangements.

    I must admit I was a loose borrower and may have added to the problem to some degree in the past but I must say I did eventually settle all my debts.
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