Interest rates cut to 1%?
Discussion
That's what one guru was saying would have to happen to get the economy moving again.
Great for people with mortgages, but disaster for savers if inflation's at 10% (which I believe it realistically is)
But hang on, won't low interest rates encourage people to borrow more... which is how we got into the mess in the first place??
Great for people with mortgages, but disaster for savers if inflation's at 10% (which I believe it realistically is)
But hang on, won't low interest rates encourage people to borrow more... which is how we got into the mess in the first place??
Simpo Two said:
scotal said:
Read your mortgage docs..... a lot of loans have a minimum 3% interest rate.
No use to me - I have savings but no mortgage.Honestly, I don't think I've met one of the three people in the UK with savings and no mortgage. Gives me hope. Maybe one day I'll also have no mortgage and what was it called again? Savings?
domster said:
THEY REALLY EXIST! QUICK TAKE A PIC. DON'T LET IT GET AWAY!
Honestly, I don't think I've met one of the three people in the UK with savings and no mortgage. Gives me hope. Maybe one day I'll also have no mortgage and what was it called again? Savings?
I'm one of them. No debt, had no interest in buying a house three years ago when I could rent for less, even less interest now. One day I might buy but only when it's a house I can live in for the next 10+ years.Honestly, I don't think I've met one of the three people in the UK with savings and no mortgage. Gives me hope. Maybe one day I'll also have no mortgage and what was it called again? Savings?
MonkeyHanger said:
domster said:
[
THEY REALLY EXIST! QUICK TAKE A PIC. DON'T LET IT GET AWAY!
Honestly, I don't think I've met one of the three people in the UK with savings and no mortgage.
There are more of us than you think THEY REALLY EXIST! QUICK TAKE A PIC. DON'T LET IT GET AWAY!
Honestly, I don't think I've met one of the three people in the UK with savings and no mortgage.
Simpo Two said:
That's what one guru was saying would have to happen to get the economy moving again.
Great for people with mortgages, but disaster for savers if inflation's at 10% (which I believe it realistically is)
But hang on, won't low interest rates encourage people to borrow more... which is how we got into the mess in the first place??
Great! Then I'll have to listen to my work colleage bleat on about the benefits of his tracker mortgage while I'm stuck on a 4 year fixed of 6.1%. Great for people with mortgages, but disaster for savers if inflation's at 10% (which I believe it realistically is)
But hang on, won't low interest rates encourage people to borrow more... which is how we got into the mess in the first place??
Another here who's lived within his means.
I often think it is "us" that were the idiots, the only time I will change my mind is when Government/BoE act in the interest of savers when they can. Sadly, that really isnt a possibility at the moment and I expect it wont be for some time to come.
I often think it is "us" that were the idiots, the only time I will change my mind is when Government/BoE act in the interest of savers when they can. Sadly, that really isnt a possibility at the moment and I expect it wont be for some time to come.
What I'd like to know is how the 'experts' and especially the MPC went from a positon oin August where they were focussed 100% on inflation, to suddenly realising (like the rest of us in the 'real economy') that recession was by far the bigger issue.
If there's one lesson worth learning it's that in a crisis, the 'experts' need to get their feet more firmly on the ground and hit it running.
If there's one lesson worth learning it's that in a crisis, the 'experts' need to get their feet more firmly on the ground and hit it running.
Digga said:
What I'd like to know is how the 'experts' and especially the MPC went from a positon oin August where they were focussed 100% on inflation, to suddenly realising (like the rest of us in the 'real economy') that recession was by far the bigger issue.
If there's one lesson worth learning it's that in a crisis, the 'experts' need to get their feet more firmly on the ground and hit it running.
When we get massive inflation will you change your mind?If there's one lesson worth learning it's that in a crisis, the 'experts' need to get their feet more firmly on the ground and hit it running.
NoelWatson said:
Digga said:
What I'd like to know is how the 'experts' and especially the MPC went from a positon oin August where they were focussed 100% on inflation, to suddenly realising (like the rest of us in the 'real economy') that recession was by far the bigger issue.
If there's one lesson worth learning it's that in a crisis, the 'experts' need to get their feet more firmly on the ground and hit it running.
When we get massive inflation will you change your mind?If there's one lesson worth learning it's that in a crisis, the 'experts' need to get their feet more firmly on the ground and hit it running.
Would you, or anyone else for that matter, share your thoughts on the MPC and their focus on inflation. Is that (albeit temprarily) not that important as we're so far in to the deep brown stuff that liquidity and recession aversion has to be priority?
It seems to me that the govenrment HAS to look after poeple who have over borrowed and over spent and will, effectively, give the middle finger to savers, pensioners and people who dont have the ability to earn extra income in the future?
LittleBro said:
NoelWatson said:
Digga said:
What I'd like to know is how the 'experts' and especially the MPC went from a positon oin August where they were focussed 100% on inflation, to suddenly realising (like the rest of us in the 'real economy') that recession was by far the bigger issue.
If there's one lesson worth learning it's that in a crisis, the 'experts' need to get their feet more firmly on the ground and hit it running.
When we get massive inflation will you change your mind?If there's one lesson worth learning it's that in a crisis, the 'experts' need to get their feet more firmly on the ground and hit it running.
Would you, or anyone else for that matter, share your thoughts on the MPC and their focus on inflation. Is that (albeit temprarily) not that important as we're so far in to the deep brown stuff that liquidity and recession aversion has to be priority?
It seems to me that the govenrment HAS to look after poeple who have over borrowed and over spent and will, effectively, give the middle finger to savers, pensioners and people who dont have the ability to earn extra income in the future?
Oil has halved since July. Global metals demand has slumped
High street stores are slashing prices to keep trade going.
Inflation is about to take a serious turn downwards. In fact I'd say the BoE will have a hard job keeping it above 1% for much of next year, even if interest rates are slashed.
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