0% the new Y2K?

[Admiral Huddy]

As said before, you can't buy consumer confidence, which is what they are trying. A -ve interest rate will force people to spend. I'm pretty sure Japan did it 15 years ago or so.

[FrostedNipple]

Eurgh, my isa is now earning even less (i assume) What is inflation currently at?

[Mark]

Originally Posted by bam

I don't think the current plan is technically printing money as such, as I understand it the BoE will buy bonds and other such assets from government, companies etc with "money" they have just created. So while the money in circulation increases in theory you've taken assets out of the economy of an equivalent value, then when they're finished they can redeem the bonds/sell the assets and take the money back out of the system.

This is correct. There are no plans to warm up the printing presses (beyond the usual replacement of existing notes and whatever else they do). The £75bn will be used to buy up low(ish) risk government and corporate debt.

My mortgage is 5.8% fixed until 2012. No exit penalty though so I'll be heading to Oxford to see the 'local' mortgage types in a week. I was considering trying to move onto an offset scheme but they're all disappearing too, for reasons that are probably obvious.

[jmc41]

Originally Posted by FrostedNipple

Eurgh, my isa is now earning even less (i assume) What is inflation currently at?

ISA's shouldn't drop until the end of the month. But it's a fair bet they'll drop another 0.5% or so then!

However, April 5th is the new tax year so there will hopefully be some good new fixed term offers. By good I mean relative to 0.5% of course, I think we can forget 6% for another year or two.

Think inflation is still over 2%, not sure on an exact figure.

[Edit] I could be wrong, they've just changed mine backdated to March 1st. Gits.

[Zirax]

Got some money in an old ISA I was looking to transfer. I just found this gem:-

Our Barclays Cash ISA allows you to transfer your cash ISA from other providers. Open an account from just £1 and start earning a variable interest rate from 0.10% AER/tax-free* paid annually.