Rates cut to 0.5%

[sniff diesel]

Did I win?

[AlexKP]

I think you are two minutes premature....

[Andy Zarse]

Yes

[Skipppy]

But correct...

Why though? IT'S NOT WORKING!

[G_T]

"WE'RE ALL GONNA DIE MAN, WE'RE ALL GONNA DIE."

Oh wait... I'm just going to get even fractionally less on my non-existant savings... Phew.

[silver.fox.2008]

anonymous said:

[redacted]

Always happens when excited

[munky]

Skipppy said:

But correct...

Why though? IT'S NOT WORKING!

Yeah, it's pretty pointless and just penalises sensible savers. They should be concentrating on the other end of the yield curve.

Mind you the BoE's single mandate is to target a given inflation rate, officially it isn't supposed to take into account other economic factors. Some other central banks have a dual mandate.

[richyb]

I'm holding out for -0.5%. Come on Gordon you've tried everything else.

[JagLover]

Skipppy said:

But correct...

Why though? IT'S NOT WORKING!

Indeed

It is penalising savers while doing little to improve the availability of credit.

The problem is not the price of credit but it's quantity. Despite previous cuts unsecured loans are now 8-10% even for people with the best credit history.

[illmonkey]

Mortgage down an other £70 a month. Whilst its not great news for everyone, its giving me a good chance to shove loads into savings.

[jshell]

It's wonderful! Banging an extra £2k/month into the mortgages....

[sniff diesel]

Will Lloyds TSB pass on the rate cut?

[cirvy]

More good news for me, might just have a quick celebration at lunch

[MitchT]

Trying to solve a problem by creating more of what caused it. Hmmm. Perhaps their next trick could be to suggest that the fire brigade start using petrol instead of water.

[Bing o]

illmonkey said:

Mortgage down an other £70 a month. Whilst its not great news for everyone, its giving me a good chance to shove loads into savings.

Why aren't you paying down the Capital instead?

What will you do when interest rates are at 7 or 8%?

What return are you getting on your savings?

[scotal]

sniff diesel said:

Will Lloyds TSB pass on the rate cut?

Yes promised it in full on SVR.

[sniff diesel]

Bing o said:

illmonkey said:

Mortgage down an other £70 a month. Whilst its not great news for everyone, its giving me a good chance to shove loads into savings.

Why aren't you paying down the Capital instead?

What will you do when interest rates are at 7 or 8%?

What return are you getting on your savings?

A lot of people would rather save at the moment if they fear their jobs are insecure.

[sniff diesel]

scotal said:

sniff diesel said:

Will Lloyds TSB pass on the rate cut?

Yes promised it in full on SVR.

a full £6 a month saved

[Mon Ami Mate]

illmonkey said:

Mortgage down an other £70 a month. Whilst its not great news for everyone, its giving me a good chance to shove loads into savings.

What's the point, you won't accumulate interest. Next step will be for banks to start charging money for deposits.

[G_T]

richyb said:

I'm holding out for -0.5%. Come on Gordon you've tried everything else.

It won't go negative IMO;

1) A significant number of people will not pay to use banks.
2) Same number withdraw majority of cash in favour of keeping it under their mattress.
3) Bank has less money to invest and less equity.
4) Banks are more fked than they were to start with.

I'm still waiting for the crime rate to go through the roof. I've fitted my deadlocks and everything...