Your are viewing a read-only archive of the old DiS boards. Please hit the Community button above to engage with the DiS !
So that's nice.
People weren't expecting them to even go as far as 1%! Not holding out much hope it gets passed on for new mortgages though... be nice if part of it does.
you're an idiot.
i think some of them are fixed rate thou
people with even an average size mortgage will save in a month what you'll earn in net interest a year. Unless you have 10's of thousands of course.
Honestly. This is so historic... it really is.
Do you have savings? Are you a currency speculator? If the answer to these questions is 'no' then the answer to your question is 'not much'.
with Abbey who are not changing their rates. In 2 years time, it might affect me, but I have just recently changed my mortgage to be 40 quid cheaper than before.
The best thing for me is that whilst the UK currency gets lower and lower, my monthly transfers from Holland to pay my UK debts gets cheaper every month. sweet
Hence higher priced imports and, more immediately for most people, more expensive foreign holidays.
If only some people hadn't decided that owning a house was more important than common sense we wouldn't be in this mess.
It's like the my cock of interest rate cuts.
until im eating beans by candle light with my finger on the trigger of a gun
You were promising me double digit inflation but it appears one of the reason for this cut is that inflation was going to be too LOW. Have I been panic buying pasta and tinned peaches for nothing???
arrrh fuck inflation we need to get things running again, its a confidence shot i think more than a logical one.
as inflation looks set to fall in the spring anyway.
They've essentially decided that they need a HUGE cut in interest rates to persuade the banks to pass it on. It's an attempt to boost the economy in the face of massive unemployment. The most worrying thing is the scale of the cut - it tends to suggest the BoE is expecting a rather nasty recession rather than the short 'blip' that has been talked up.
We've still got to pay off the huge bail out of the banks after all...
that the scale of the cut is partly intended to ensure some of it's passed on in retail interest rates. Given that several lenders (Abbey in particular) had already raised their Tracker mortgage rates for new lenders in preparation for a 0.5% cut doing what everyone already expected may have had little to no effect. Libor is still a major problem at the moment - that needs to drop back down a fair way.
but 1.5% is a hell of a cut, even more so when you consider that it's 33% down in one fell swoop.
for the love of cod don't
I am trying to be better.
But it doesnt take much to push me into old habits.
you could always ....eat it....unless you are stocking up on food when it isnt rock bottom prices.
peoples 'wealth to spend' is decreasing, and because they want banks to start loaning both to each other and to businesses (they want the libor...interbank lending rate to decrease)
They want conditions to look more favourable to enable some business to continue.
However you can (and we will) have a recession (interest rates officially cut) and yet at the same time have increased inflation with regard to essentials, which will happen.
Essentials include basic food, basic services (council tax), utilities, and mortgages (the payments for these will (overall) probably not decrease...how else will the banks claw it back)
Pay increases for gov workers has been increased (if you check the recent strikes) I doubt if large numbers of ordinary private sector workers have had increases......if the gov offsets these costs by laying off staff then they will then have a later further increased social security bill, the gov will experiance an increased social security bill alongside less taxes, which will encourage gov (local and central) to increase taxation not keep it the same (unless they reduce services) (Of course the gov can continue to borrow more and try to stave off for longer)
So there are still things that are up to how gov and banks decide to act, I cant second guess which order they will do what in, since they havnt had this situation before and I cannot guess what is happening in their tiny minds at the best of times
However yes, you can have interest rates dropping (cos of recession) at the same time as increased (basic essentials) prices (unecessaries may drop, or un basics may stay the same) and at the same time as increased taxation, and without significant (overall) housing cost decreases, increased utility bills etc.
We are being lucky that oil has dropped un petit per (but not much) because volume of production could easily be cut to keep the price up (actually according to a much larger sense and looking at an even longer term view the volume of oil production SHOULD actually be cut, although that would compound our woes at present)
As more and more businesses go to the wall the social security bill will continue to rise, as will mortgage defaults (unless they introduce a mechanism to lessen these....I cannot tell how or why they (banks and gov) dont do this now so i cannot predict if and when they will)
housing costs will increase for gov too, tax sources will reduce further increasing the need for either tax increases further, or more cutbacks (leading to even more unemployment/social security bill/house repossessions)
One thing that is for certain, i very much doubt that dried pasta will return to 20p per packet or beans to 20p per tin for a long long time.
At present with pasta being nearly 40p I would not buy that.
I am currently buying 'basics chocolate' 24p per bar (lots of sugary calories) and ....hang on what am i telling you lot for......they'll increase what Im currently stiocking up on if enough other people do it....
Oooh one thing that will increase in price when enough people switch from expensive 'nicely packaged stuff'.....analgesics (asperine is still 13/14p per pack of 16 in sainsburies) I imagine this sort of bargain will dissappear soon. (sainsburies basic curry sauce has gone up from 4p to 8p....still a bargain)
Basic noodles are still under 10p
Happy Shoppers shop at sainsburies not Happy Shopper
than the equivalent money that I have squirreled away in a savings account. Time to stop deferring, methinks.
i have an ISA
i am going to spend that baby when i get the %6.15.