BoE slashes interest rates by 1.5%

[dirtydog]

Good for those with debts but not so good for those of us with savings and no debts

http://news.bbc.co.uk/1/hi/business/7713006.stm

[Desmo]

1.5%? That's a big step.

Hopefully it will stay low for when our fixed rate mortgage comes to an end next year.

[dirtydog]

A reflection of how dire things are, I think.

[Desmo]

Just read further down that some of the banks may not pass the cut on to borrowers. Bit off if they don't...they should at least meet half way.

[phykell]

Originally Posted by Desmo

Just read further down that some of the banks may not pass the cut on to borrowers. Bit off if they don't...they should at least meet half way.

It should be mandatory TBH and is especially ironic considering it's largely the banks who are to blame for the current situation. It was their greed and their stupidity.

[dirtydog]

Originally Posted by phykell

It should be mandatory TBH and is especially ironic considering it's largely the banks who are to blame for the current situation. It was their greed and their stupidity.

I definitely think there is a case for regulation in that area. In theory market forces control what rates banks lend at, but in practice it isn't exactly easy or affordable to move your mortgage, loan or credit card debt to another lender who has cheaper rates.

[Admiral Huddy]

Originally Posted by phykell

It should be mandatory TBH and is especially ironic considering it's largely the banks who are to blame for the current situation. It was their greed and their stupidity.

Is it? You sure it's not the greed of the consumer too?

This rate cut isn't just about restoring confidence in the retail market place, but to resume stability within the banks. Once banks are confident to start lending to each other, then the economy will ease and growth can emerge.

[phykell]

Originally Posted by Admiral Huddy

Is it? You sure it's not the greed of the consumer too?

Yes

http://www.boat-drinks.co.uk/showthread.php?t=9550

[Admiral Huddy]

Originally Posted by phykell

Yes

http://www.boat-drinks.co.uk/showthread.php?t=9550

I still disagree.

I'm not saying that banks are faultless, but the consumer also has played a part in this.. Demanding higher prices for house sales, consumer greed, the wanting to borrow borrow borrow.. Credit card usage has spired out of control as people spend beyond their means. Now the banks are at fault for not regulating the amount of lending but then people are at fault for the demand in first place. The sad thing is, this happens every ten years or so and we never learn.

[A Place of Light]

Originally Posted by Desmo

Just read further down that some of the banks may not pass the cut on to borrowers. Bit off if they don't...they should at least meet half way.

Won't it mean that the banks that do will suddenly find themselves with a lot of extra business on their hands and, as a consquence, the others will have to follow suit?