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.

[dirtydog]

I think we can safely say they will be quick to pass on the rate cut to savers!

[Admiral Huddy]

You think?

Superb news!! I just hope the banks pass this down.. TSB have announced they will but I wouldn't be surprised if the like of RBS only pass on a small percentage.

I think I'll increase my monthly payments to take advantage of this.

[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.

[Matblack]

Now I'm pleased I took the BoE tracker mortgage which didn't have an arrangement fee

MB

[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.

[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?