BOE to cut rates by 0.5%

[tricky69]

breaking news on SKY.... fed and Europe also cutting rates

[tricky69]

ECB down to 3.75% and FED cuts by 0.5% as well

[johnfm]

that all!! 4% would have been nice....

[Jon C]

Panic on the streets of London
Panic on the streets of Birmingham
I wonder to myself
Could life ever be sane again ?
The Leeds side-streets that you slip down
I wonder to myself
Hopes may rise on the Grasmere
But Honey Pie, you're not safe here
So you run down
To the safety of the town
But there's Panic on the streets of Carlisle
Dublin, Dundee, Humberside
I wonder to myself

[siwil1]

speculation or leaked?

I didnt think the figs were released until tomorrow.

[CrashTD]

link for good measures since I was reading it anyway. Released today
http://www.bankofengland.co.uk/publications/news/2...

BoE also predicting that CPI inflation will be above 5% in the next month or two........

Edited by CrashTD on Wednesday 8th October 12:06

[rich1231]

anonymous said:

[redacted]

I dont agree. Decisive action is needed today, markets are too volatile at the moment to wait a day.

[MitchT]

Right, so sky-high living costs and st returns on savings it is then... and all so that feckless borrowers can have an easy time of it. Naive in the extreme.

[tricky69]

siwil1 said:

speculation or leaked?

I didnt think the figs were released until tomorrow.

emergency measure, they could not wait..... DON'T PANIC !!!!!!

[ukwill]

excellent news indeed... a few more reductions still to come though. 3.5% within 12mths??

[Greenie]

rich1231 said:

anonymous said:

[redacted]

I dont agree. Decisive action is needed today, markets are too volatile at the moment to wait a day.

And it has been co-ordinated with other central banks to happen today.

[rich1231]

MitchT said:

Right, so sky-high living costs and st returns on savings it is then... and all so that feckless borrowers can have an easy time of it. Naive in the extreme.

Living costs are dropping

[fatboy b]

I wonder if this'll be passed on to borrowers? NFL!

[CrashTD]

MitchT said:

Right, so sky-high living costs and st returns on savings it is then... and all so that feckless borrowers can have an easy time of it. Naive in the extreme.

far from an easy time. More 'not making them homeless'

lots of big city people are also taking massive hits as they invest some of their own money

[FourWheelDrift]

anonymous said:

[redacted]

"Wibble"

Senior BoE executive, Mr E, Blackadder.

[johnfm]

MitchT said:

Right, so sky-high living costs and st returns on savings it is then... and all so that feckless borrowers can have an easy time of it. Naive in the extreme.

I don't really care for returns on savings. It is promise of high yields for saver and institutional investors that created the mortgage backed securities market.

[ukwill]

its not just the BoE though..

ECB, BOE, BOC, FOMC, SNB, CHINA, SWEDEN have all done it.

[spikeyhead]

anonymous said:

[redacted]

When was the last time any politician thought anything through properly? With the possible exception of Blair timing his exit we need to look back to the mid eighties.

[rich1231]

anonymous said:

[redacted]

Yes I do actually, but I dont expect there is a perfect answer to the issues being faced at the moment. We can moan all we want about slow decisions etc and whether or not we have done enough. If the current events play out without intervention things would be far far worse that we can imagine right now. We still have a mindeset that "everything will be alright" when in fact this is a right stty stick.

[215cu]

One concerted effort, US Fed, ECB, BoE, Canada, Switzerland & Sweden.

Stock markets seems to be happy.

All that's needed are some meaningful (partially anyway) core inflation figures, gas, petrol and food price hikes will all drop out in the next few months. With Oil down at $84, even at a crap £:$, the pressure is off there a little too. Consumer demand over the next 12 months will determine prices and personally I am far, far more concerned with the effects of deflation than a 3-4% inflation rate.

I think, dare I say it, the government have taken some very clear advice and despite the dithering and leaks, it looks like it might do the job, the Tier 1 capital bail-out is a clever mechanism to either put up or shut up and oiling the interbank mechanism with guarantee should restore confidence.

Let's be realistic, these banks are not going down the stter, for the sake of relatively small sums of liquidity (compared to asset wealth - no matter how overpriced), it's purely down to confidence.

It's important to note that some $800bn of derivatives related to Freddic Mac and Fannie Mae as well as the Lehman's CDS are all to be settled at the end of next week.

Now if that can happen without too much of a festival, then the worst of the liquidity crisis just might be over.

Next stage, the retail and consumer slowdown....

Edited by 215cu on Wednesday 8th October 12:23