UK Interest rates cut to 1.5%

Discussion in 'Current Events' started by arkitect, Jan 8, 2009.

  1. macrumors 601

    Joined:
    Sep 5, 2005
    #1
    Lowest in 315 years… sigh… where do we go from here? Actually, no need to answer. :eek:

    [​IMG]

    Link…
     
  2. macrumors 68000

    SpaceMagic

    Joined:
    Oct 26, 2003
    Location:
    Cardiff, Wales
    #2
    It's insane. 1.5%. Great for Home buyers but what about Savers! What about Pensions?

    As a student I'm waiting for the Government to cut my mortgage with them...
     
  3. macrumors G4

    Joined:
    Mar 4, 2006
    #3
    Pensioners are basically knackered. AFAIC this is a cut too far. Borrowers will not get any benefit from the banks as the rate is now lower than the floor rate in most mortgage contracts. At the same time savers have seen the interest they receive cut by around 70% since September.

    There comes a point where rate cuts just take money out of the economy. I think we passed that last month.
     
  4. macrumors 68000

    SpaceMagic

    Joined:
    Oct 26, 2003
    Location:
    Cardiff, Wales
    #4
    I constantly get the impression the Government is looking for short term fixes. Or rather, shock factors which will make people happy but will probably hurt in the long run.

    As there's very little to invest in at the moment, this rate cut is probably for the big banks so they don't have to pay out so much to investors/savers.

    I am definitely centre-right when it comes to the economy and politics, but I think the best thing to do right now is to think about the future. We are basically b*gger*d in 2009 so instead of bailing out so many banks, why don't we just pile money onto the things that have needed doing for so long - transport, hospitals, education. We may be poor for 2009, but our future will be brighter.
     
  5. thread starter macrumors 601

    Joined:
    Sep 5, 2005
    #5
    And we all know what is coming next…
    Link…

    Never believe anything until it has been officially denied.
     
  6. macrumors 68000

    SpaceMagic

    Joined:
    Oct 26, 2003
    Location:
    Cardiff, Wales
    #6
    Oh god. Get them out! Get them out now! Didn't see that. Have they just gone mad?

    Let's just be poor for a year. It's got to be better than destroying our currency.
     
  7. macrumors 68040

    Joined:
    Mar 24, 2006
    Location:
    Nottingham, UK
    #7
    i don't mind them printing more money as long as it's just for me :D
     
  8. thread starter macrumors 601

    Joined:
    Sep 5, 2005
    #8
    That is a slippery slope no one should get on to…

    [​IMG]
    A banknote with a "Use by" date.
     
  9. Moderator emeritus

    Joined:
    Jul 4, 2004
    #9
    That's a bit simplistic. UK exporters will like this. People will tend to spend more at home than spending elsewhere... the Government are doing exactly as they should and are coordinating this with other large economies. The Tories would be doing exactly the same in the same position.

    Banks won't lower their own lending rates until they can recoup some losses.
     
  10. macrumors regular

    Dejavu

    Joined:
    Jun 24, 2008
    #10
    How is low interest rates a bad thing? Usury could be considered as thievery.
     
  11. macrumors 68000

    SpaceMagic

    Joined:
    Oct 26, 2003
    Location:
    Cardiff, Wales
    #11
    I'm have no doubts the tories would be doing the same. In fact, from my life time, experience would say the tories would be doing it possibly worse. However, printing money is a serious step no doubts about it.

    UK exporters may like it. But how many UK exporters are left. We produce very little. Tertiary sector was our main source of income and since Sep 15th that's just going downhill too.

    Nothing is that simple, I know. I just have issues with the whole lack of common sense in the UK. We should have been spreading our risk in the first place, investing in every sector. We shouldn't have let our manufacturing disappear in favour of big money banks and professional services. I am proud of London being a financial capital, but London is only one city, the rest of the UK should have been producing too.
     
  12. macrumors 68000

    SpaceMagic

    Joined:
    Oct 26, 2003
    Location:
    Cardiff, Wales
    #12
    Indeed. Usury was a crime until more recently than many think!

    Low Interest rates also means less money for savers, pension funds... Pension funds... oh wait, do they even exist anymore?
     
  13. Moderator emeritus

    Joined:
    Jul 4, 2004
    #13
    Absolutely. As I recall, wrecking manufacturing to weaken unions started with the Conservatives and continued under Tony Blair's government. They weren't called New Labour for nothing. All this triangulation has got us nowhere and of all people in government, I'm fairly sure Gordon Brown now understands that. A lot of rule books are being rewritten, and a lot of much older ones are being dusted off again. We'll see how things pan out.
     
  14. macrumors 68000

    SpaceMagic

    Joined:
    Oct 26, 2003
    Location:
    Cardiff, Wales
    #14
    We shall. We shall. I am staying in education. Graduation is this year but finding a job has been quite difficult. That's a whole other story however. Converting to Law - something I should have done in the first place :D
     
  15. macrumors 6502a

    Joined:
    Apr 2, 2007
    Location:
    Leeds, UK
    #15
    Sigh? Surely you mean Woot! ?

    I've just saved another bunch of money on my mortgage, which I can then spend on luxury consumer devices :)
     
  16. thread starter macrumors 601

    Joined:
    Sep 5, 2005
    #16
    Nope. I meant *sigh*…

    :eek:
     
  17. macrumors 6502

    Joined:
    Mar 16, 2007
    #17
    If low rates were a good thing then they would be permanently set to 0% :mad:

    Lets wind the big clock all the way back to 2002/2003...low interest rates, people borrowed lots, and then lots and then lots more...and about 12 months ago someone figured out that those people had borrowed too much and it all came crashing down.

    Now our great leaders are trying the same trick again, because they really do have a clue, but we the people aint buying it....we can't afford it no more!

    The technical term is "pushing on a string".
     
  18. Moderator emeritus

    Joined:
    Jul 4, 2004
    #18

    Little to do with interest rates, more to do with loose lending practices, the packaging of debt as an asset and the inevitable bubble. You can still have low interest rates with tighter lending restrictions and increased regulation as we soon shall see. ;)
     

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