Interest Rates To Stay At 0.5%

The Fear

A Wise Man (once sat next to him)
#1
Surprised no one has posted this.

Looks like the new Governor of The Bank Of England is trying to make his mark.

It has been indicated that the base interest rate is set to stay at 0.5% for some considerable time yet, some predicting two years or more.

With doubts and worries growing that the low rates would soon be increased, which would have led to a large increase in repossessions and a possible dampening of an already difficult building market, the clarity looks to have been well received.

http://www.bbc.co.uk/news/business-23588958
 

OnMeHeadFred

Vital Reserves Team
#2
It is the deliberate transfer of wealth from savers to debtors, and is designed to debase the currency and cheat those who hold the country's bonds.

It is just an attempt to re-inflate the property bubble, which caused the crash in the first place.

Inflation is inevitable and this will erode everyone's spending-power, in a time when wages are falling.

It is hoped that it will stimulate the economy but what growth there is will be based on consumption bought with credit.

Bank of England independence - my arse!


 

chicovilla

Vital Squad Member
#3
One commentator on radio 5, reckoned interest rates will rise quicker, as the economy is predicted to rise more than originally predicted. 1st qtr 2015 was mentioned.

They reckoned the uk is prime for foreign investment, and the £ rose on this news, which apparently means interest rates may rise, sooner than the 3 years stated. Confused.com :54: :42: :81:
 

badge73

Vital 1st Team Regular
#4
chicovilla - 7/8/2013 20:12

One commentator on radio 5, reckoned interest rates will rise quicker, as the economy is predicted to rise more than originally predicted. 1st qtr 2015 was mentioned.

They reckoned the uk is prime for foreign investment, and the £ rose on this news, which apparently means interest rates may rise, sooner than the 3 years stated. Confused.com :54: :42: :81:
quite surprised as bbc is well known for its left wing reporting, to be honest i feel sorry for those who have worked all there lives, saved hard, and ended up for the past few years and now future few years with low interest rates.
 

The Fear

A Wise Man (once sat next to him)
#5
That is the big problem onmyheadfred I agree.

Growth appears to be due to banks starting to lend a bit more, so as you say, like the crash, it is debt based.
 

Frankus

Vital Reserves Team
#7
0.5%. Bloody hell. The economy must still be in recovery mode over there?

We are at the lowest interest rate I have ever seen set by the RBA in Australia and we are sitting at 2.5% due to a small downturn in the economy particularly with commodities. This rate results in around 5.88% from the banks for a standard variable mortgage rate.

What interest rate is on offer in the UK for home loans?
 

The Fear

A Wise Man (once sat next to him)
#8
Mine is 3.49%. It was 2.99% but the fixed rate period ended!

Looked to move last year and the rates were worse than that.
 

OnMeHeadFred

Vital Reserves Team
#9
The Fear - 7/8/2013 22:50

That is the big problem onmyheadfred I agree.

Growth appears to be due to banks starting to lend a bit more, so as you say, like the crash, it is debt based.
There is a certain school of economics which says that the economy cannot produce growth until over-valued capital assets return to their true value.

They say that keeping credit too cheap will prop up over-valued assets (houses and shares) and ensure the recovery will take decades, like the period from 1920 to 1939.

So based on the knowledge that no party has the courage to face up to this reality and that the government is intent on increasing the money supply, a long drawn out period of flat growth is inevitable, and instead of pretending that growth is just round the corner, they have just announced, although spun to high heaven, that the economy is going to be sick for the foreseeable future.

So it seems the government realise that their politically safe strategy is no cure and that the economy is going to be in the toilet for years to come.

They might be congratulated for biting the bullet but robbing savers for the benefit of debtors runs counter to every Tory principle they pretend to have.

When Carney declares that older savers are happy to see their money handed over to banks and debtors, he is not only a liar he is a total c***, and proves what we knew when he was appointed, that he is just a well-paid political puppet.





 

badge73

Vital 1st Team Regular
#10
Beovilla - 7/8/2013 23:55

badge73 - 7/8/2013 22:31


quite surprised as bbc is well known for its left wing reporting

Is it? Would you like to provide some evidence of this please?
http://digitaljournal.com/article/351075

http://www.telegraph.co.uk/culture/tvandradio/bbc/10211915/John-Humphrys-a-victim-of-BBC-Left-wing-bias.html

http://www.thecommentator.com/article/1953/exclusive_bbc_left_wing_political_bias_illustrated_through_uk_political_funding_revelations

http://www.newstatesman.com/uk-politics/2010/09/lecture-thompson-bbc-interview
 

The Fear

A Wise Man (once sat next to him)
#11
Thing with Carney is he has a nice escape, just goes back to Canada when he's done. No problem for him!

After so many repossessions under Maggie you can understand why the Tories don't want the same again I guess.

We all know all the same mistakes will be made over and over again.
 

badge73

Vital 1st Team Regular
#12
i was talking to a south african guy the other week about debt and such things, and wondered how south africans coped or what measures the country took?

he explained what they done was only allow people to have credit of a third of their salaries (cant remember if mortgage payments were included) but he said it worked well, as things like car finance and even mobile phones contracts were accountable, as well as the credit cards. plus those who tried to cheat the tax system suddenly declared a whole lot more money as well (so they could get more credit lol)
 

OnMeHeadFred

Vital Reserves Team
#14
The Fear - 8/8/2013 10:38

Thing with Carney is he has a nice escape, just goes back to Canada when he's done. No problem for him!

After so many repossessions under Maggie you can understand why the Tories don't want the same again I guess.

We all know all the same mistakes will be made over and over again.
The adversarial political system certainly limits the possibilities and puts whatever government is in power into a straitjacket.

So the last government were constrained by the Tories' standing accusation that they just tax and spend, which led them to borrow money to finance their 'investment' in Education and the NHS, instead of raising the money through direct taxation, instead of deferred taxation which is what government borrowing is.

Now the Tories are constrained by the Labour accusation that they are the nasty party, and so they are unable to introduce the policies which might actually work, instead of policies which do absolutely nothing.

So as you say, the same mistakes just keep happening.

 

The Fear

A Wise Man (once sat next to him)
#15
Yup, there are a few areas, as we've discussed before, that could be done with cross party agreement. They all KNOW that the NHS, pensions, tax etc is a mess and needs to be sorted. No one party could mess with any of this really but cross party they could.

They won't.

Status quo rules.
 

Beovilla

Vital Squad Member
#16
badge73 - 8/8/2013 11:18

Beovilla - 7/8/2013 23:55

badge73 - 7/8/2013 22:31


quite surprised as bbc is well known for its left wing reporting

Is it? Would you like to provide some evidence of this please?
http://digitaljournal.com/article/351075

http://www.telegraph.co.uk/culture/tvandradio/bbc/10211915/John-Humphrys-a-victim-of-BBC-Left-wing-bias.html

http://www.thecommentator.com/article/1953/exclusive_bbc_left_wing_political_bias_illustrated_through_uk_political_funding_revelations

http://www.newstatesman.com/uk-politics/2010/09/lecture-thompson-bbc-interview

The final article is not really about this topic, and is merely one person's opinion, which may or may not be correct. If you read any of the books listed here at http://www.glasgowmediagroup.org/content/view/20/37/ I think you should find that there are no grounds whatsoever for his claim.
 

badge73

Vital 1st Team Regular
#17
well you asked for evidence and i provided, as per the last article im sure quite a few would except that mark thompson opinion is more valid then most considering he was a director general ....
 

OnMeHeadFred

Vital Reserves Team
#18
Beovilla - 8/8/2013 12:41

badge73 - 8/8/2013 11:18

Beovilla - 7/8/2013 23:55

badge73 - 7/8/2013 22:31


quite surprised as bbc is well known for its left wing reporting

Is it? Would you like to provide some evidence of this please?
http://digitaljournal.com/article/351075

http://www.telegraph.co.uk/culture/tvandradio/bbc/10211915/John-Humphrys-a-victim-of-BBC-Left-wing-bias.html

http://www.thecommentator.com/article/1953/exclusive_bbc_left_wing_political_bias_illustrated_through_uk_political_funding_revelations

http://www.newstatesman.com/uk-politics/2010/09/lecture-thompson-bbc-interview

The final article is not really about this topic, and is merely one person's opinion, which may or may not be correct. If you read any of the books listed here at http://www.glasgowmediagroup.org/content/view/20/37/ I think you should find that there are no grounds whatsoever for his claim.
[/quote]

The accusations about the BBC are generally true, and I suspect that it has something to do with the present wording of their charter, which was changed not so long ago.

If I remember correctly, the wording insists that the BBC cannot challenge the consensus and that what ever the Government has decided is the consensus.

So if the government have decided that climate change is man-made, and that multiculturalism and immigration are wonderful things then, they are by definition deemed to be unbalanced if they contradict that government position.

This has effectively made them an arm of the state.

But having said that; other channels are amazingly the same, in what they choose not to challenge.
 

Ratman

Vital 1st Team Regular
#20
Great news for me! The interest rate on my fixed rate mortgage is currently 7%!!! It was fixed over 5 years (biggest mistake i've ever made!) but it ends in october (which we very much look forward to) so come then we will be quids in! Then hopefully I will then be able to clear some of my debts.