Interest rates - how much off on Thursday ?

[anonymous-user]

[redacted]

[NoelWatson]

0.25

[andy400]

0% cut.

[toppstuff]

0.50

If its 25 they are pussies IMO.

[BigJonMcQuimm]

Probably 0.25, hopefully 0

[johnnywb]

I think they'll hold.

TBH, it doesn't make a lot of difference. If they drop the rate, sure, it'll help people on tracker lending rates, but the banks simply do not want to lend money, so it's not going to help on a macro level. They'll still be looking to take mortgages back in etc.

[Fiddlemesticks]

Here in Australia they were thinking a 0.50% rate cut. But they've just announced a 1% cut. Biggest cut since 1992.

Markets have had a bounce off the back of it.

[BOR]

0,25% is already overdue.
0,5% could induce panic.

Credit supply is in reality being restricted by the banks, so limits risk of inflation. No big change in LIBOR, but sets trend.

I would vote for 0,25% immediately, with a clear promise of a further 0,25% at short notice if felt to be necessary.

When people on forums are calling for a rate change, you already know you are behind the curve.

[Chilli]

toppstuff said:

0.50

If its 25 they are pussies IMO.

Agreed. Sick of them all talking about what we should do and what we're gonna do....just feckin do it. It would be handy for the Fed to reduce before Thursday, then the MPC might be forced into a 50bp cut, but I guess it'll be 25.

[V8mate]

johnnywb said:

TBH, it doesn't make a lot of difference. If they drop the rate, sure, it'll help people on tracker lending rates, but the banks simply do not want to lend money, so it's not going to help on a macro level. They'll still be looking to take mortgages back in etc.

I agree. Apart from some 'adjustments' in the City, unemployment is not a major problem at the moment so most people can pay their mortgage. Dropping rates is always welcomed by mortgage payers (me included) but you would have thought that banks would want higher rates at the moment to attract savers (especially international money) in order to generate improved liquidity.

Rates were dropped by 1.0% in Australia yesterday and quite ferociously in the States a few weeks back. Be interesting to see our response.

Edited by V8mate on Tuesday 7th October 08:27

[rich1231]

V8mate said:

johnnywb said:

TBH, it doesn't make a lot of difference. If they drop the rate, sure, it'll help people on tracker lending rates, but the banks simply do not want to lend money, so it's not going to help on a macro level. They'll still be looking to take mortgages back in etc.

I agree. Apart from some 'adjustments' in the City, unemployment is not a major problem at the moment so most people can pay their mortgage. Dropping rates is always welcomed by mortgage payers (me included) but you would have thought that banks would want higher rates at the moment to attract savers (especially international money) in order to generate improved liquidity.

Rates were dropped by 1.0% in Australia yesterday and quite ferociously in the States a few weeks back. Be interesting to see our response.

Edited by V8mate on Tuesday 7th October 08:27

you are deluded
short weeks and layoffs are happening all over.

[V8mate]

rich1231 said:

V8mate said:

johnnywb said:

TBH, it doesn't make a lot of difference. If they drop the rate, sure, it'll help people on tracker lending rates, but the banks simply do not want to lend money, so it's not going to help on a macro level. They'll still be looking to take mortgages back in etc.

I agree. Apart from some 'adjustments' in the City, unemployment is not a major problem at the moment so most people can pay their mortgage. Dropping rates is always welcomed by mortgage payers (me included) but you would have thought that banks would want higher rates at the moment to attract savers (especially international money) in order to generate improved liquidity.

Rates were dropped by 1.0% in Australia yesterday and quite ferociously in the States a few weeks back. Be interesting to see our response.

Edited by V8mate on Tuesday 7th October 08:27

you are deluded
short weeks and layoffs are happening all over.

Even if I am, it's not the job of the BoE to make mortgages more or less affordable.

[Chilli]

rich1231 said:

V8mate said:

johnnywb said:

TBH, it doesn't make a lot of difference. If they drop the rate, sure, it'll help people on tracker lending rates, but the banks simply do not want to lend money, so it's not going to help on a macro level. They'll still be looking to take mortgages back in etc.

I agree. Apart from some 'adjustments' in the City, unemployment is not a major problem at the moment so most people can pay their mortgage. Dropping rates is always welcomed by mortgage payers (me included) but you would have thought that banks would want higher rates at the moment to attract savers (especially international money) in order to generate improved liquidity.

Rates were dropped by 1.0% in Australia yesterday and quite ferociously in the States a few weeks back. Be interesting to see our response.

Edited by V8mate on Tuesday 7th October 08:27

you are deluded
short weeks and layoffs are happening all over.

Quite. I thought we saw the biggest rise in unemployment a few weeks back, for years.

[NoelWatson]

BOR said:

0,25% is already overdue.
0,5% could induce panic.

Credit supply is in reality being restricted by the banks, so limits risk of inflation. No big change in LIBOR, but sets trend.

I would vote for 0,25% immediately, with a clear promise of a further 0,25% at short notice if felt to be necessary.

When people on forums are calling for a rate change, you already know you are behind the curve.

BOR said:

0,25% is already overdue.

Do you think CPI will be below target in two years?

[BOR]

Do I think I will have a job in two years ?

I don't give a monkey's about inflation right now, quite frankly. Oil price goes up or down and can't be influenced by playing with interest rates, no importer in their right mind is going to ratchet up prices if they possibly avoid it. So I don't see inflation as being a big problem right now.

Edited by BOR on Tuesday 7th October 08:37

[maximm]

will be 25bps, should be 50bps but with market sentiment as it stands a cut wont do f*ck all anyway.....

[kambites]

Hopefully 0%

In reality probably 0.25%.

[rich1231]

V8mate said:

rich1231 said:

V8mate said:

johnnywb said:

TBH, it doesn't make a lot of difference. If they drop the rate, sure, it'll help people on tracker lending rates, but the banks simply do not want to lend money, so it's not going to help on a macro level. They'll still be looking to take mortgages back in etc.

I agree. Apart from some 'adjustments' in the City, unemployment is not a major problem at the moment so most people can pay their mortgage. Dropping rates is always welcomed by mortgage payers (me included) but you would have thought that banks would want higher rates at the moment to attract savers (especially international money) in order to generate improved liquidity.

Rates were dropped by 1.0% in Australia yesterday and quite ferociously in the States a few weeks back. Be interesting to see our response.

Edited by V8mate on Tuesday 7th October 08:27

you are deluded
short weeks and layoffs are happening all over.

Even if I am, it's not the job of the BoE to make mortgages more or less affordable.

Its not about mortgages. Interest rates have much wider impact.

[toppstuff]

maximm said:

will be 25bps, should be 50bps but with market sentiment as it stands a cut wont do f*ck all anyway.....

Well the FTSE is up more than 2.5% already this morning in anticipation of a chunky rate cut. I think they should go for 50 bps reduction. It's all about physcology.

Anyone here trading volatility? What does the VIX look like?

[AMCDan]

can't be arsed with the same:

"we'll do whatever it takes"

"what'll it take?"

"i dunno"