MSE News: UK base rate decision looms - what it means for you

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  • 2010
    2010 Posts: 5,361 Forumite
    Name Dropper First Anniversary Photogenic First Post
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    They always used to control inflation by rate adjustments.
    But all that went out of the window when Brown and the banks wrecked the economy in 2008.
    The answer was cheap money for all to get people spending.
    Print money to buy worthless debt (QE).
    Give tax payer`s money for "help to buy" so the builders can rack up house prices.
    Offer banks dirt cheap tax payers money so they don`t need to pay decent saving rates.
    Interest rates have been artificially at rock bottom for ten years because the only "long term economic plan" is to keep people spending and burdening themselves with debt that can never be repaid in their lifetimes.
  • Malthusian
    Malthusian Posts: 10,944 Forumite
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    Mersey wrote: »
    Clearly not if inflation falls to the 2% target.

    Indeed Martin Lewis regularly lists inflation-busting accounts and bonds (although I concede at the moment there's hardly any because inflation is almost double the 2% target).

    Words like "always" "never" "everyone" "forever" should never be taken literally, including in this sentence.

    People who have a few thousand quid in an emergency fund to squirrel away can use loss-leader accounts, but for a significant sum of money like a pension fund or an inheritance, loss-leader accounts aren't available, or only up to a small fraction of it.

    So yes you can beat inflation with cash, sometimes, but only with a small fraction of your assets, or if you have very little assets at all.
  • phillw
    phillw Posts: 5,594 Forumite
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    Glen_Clark wrote: »
    So they announce the first rate rise in 10 years - but share prices rise.

    Share price rises due to sterling dropping.

    Sterling drops because there is no long term confidence in it.
  • alanq
    alanq Posts: 4,216 Forumite
    Combo Breaker First Post
    edited 3 November 2017 at 6:01PM
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    alanq wrote: »
    I wonder if these announcements cover all such accounts or only those currently available to open.

    Skipton BS from December 5th
    "The society will pass the base rate increase on in full for all of its on-sale savings accounts...

    In addition it will move to having none of its on-sale and off-sale accounts paying less than 0.5%."

    http://www.skipton.co.uk/base-rate-change
  • alanq
    alanq Posts: 4,216 Forumite
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    According to The Guardian, Newcastle BS will be passing on the increase in full.

    https://www.theguardian.com/business/2017/nov/02/interest-rate-rise-bank-of-england-homeowners-savers
  • tonyt1
    tonyt1 Posts: 6 Forumite
    edited 3 November 2017 at 4:42PM
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    Santader 123 at 3%
    Bank cuts rate from 0.5 to 0.25 [Aug 16]
    Santader 123 reduces to 1.5%

    Bank raises rate from 0.25 back to 0.5 [Nov 17']
    Are Santader going to raise it back to 3% . lol

    pass on the increase, you have to be joking

    Just like the energy companies . . . ripping us all off
  • greenglide
    greenglide Posts: 3,301 Forumite
    First Anniversary Combo Breaker Hung up my suit!
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    The current base rate is 0.50%.

    So Santander pay 1.5% for the 123 account and you reckon they are "ripping us all off". Please explain exactly how?
  • tonyt1
    tonyt1 Posts: 6 Forumite
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    do you actually need a reply . . . lol
  • whatleytom
    whatleytom Posts: 6 Forumite
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    What exactly do you think these businesses are here to provide for you? Charity?
  • tonyt1
    tonyt1 Posts: 6 Forumite
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    dont be silly

    when rates go down, bank rates go down
    when rates go up, bank rates go up
This discussion has been closed.
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