Bank interest rate cut benefits us how exactly?

Bank interest rate cut benefits us how exactly? What is the point of the bank of england cutting the base rate if the mortgage lenders aren't going to pass the benefit on to the public by reducing mortgage rates? At the same time banks immediately slash the interest rates on saving accounts which mean people earn less on any savings they may have. The benefits of a cut in interest rates aren't reaching the very people its supposed to help.

We're paying the old rate on our mortgages and our savings in the bank are worth less...

Isn't the point in dropping the interest rate to try and reduce the effects of this recession? How do they expect that to happen when we're still paying the old rate on our mortgages and our savings in the bank are worth less? The quarter percent that HBOS offered to pass on to customers was pretty pathetic. It's an absolutely ludicrous state of affairs and I think that the mortgage companies and lenders should be forced to adjust their rates accordingly whenever a change in the base rate occurs. No wonder the country is almost on its knees!

Bank interest rate cut UK We saw the same thing happen recently with the price of oil when it was fluctuating. The price per barrel went up and almost immediately the price at the pumps went up. The oil prices went down and there was a significant delay in the prices paid on the forcourt following suit. It's enough to make a person weep. We're quite literally being screwed left, right and centre by big business. It's got to stop.

So, the bank of England has cut interest rates by one percentage point and it's at the lowest level since 1951. Well big deal, because we certainly aren't likely to reap the benefits of this for a while yet. Gordon Brown can urge lenders to pass on the rate cut until he's blue in the face; no one's listening and our economy will continue to plunge until the banks, the building societies and large corporations quit fleecing the people.

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Have just thought of a solution to the Greek part of the current economic crisis.

China appears to be willing to put some money into the EU (presumably they must think there is a profit to be made); so, China bails out Greece and in return the EU puts the Chinese government in charge of Greece.

I think the Greeks would very quickly learn a new work ethic!

-1

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grumpyoldwoman - 2-Nov-11 09:50

The Bank Interest Rate cut is robbing savers and pensioners: annuity rates are down. All the western economies are bankrupt: USA, Italy, Spain, UK, Greece, Ireland, Portugal, totally bankrupt. They have no choice but to cut spending and rob their pensioners, and future unborn generations. We are heading rapidly to becoming economic slaves of the Chinese. Genghis Khan couldn't have done more. Perhaps a new Gandhi needs to arise form our lands, and forbid payment to Peking of the Salt Tax. Maybe we need to wear homespun clothes, and loincloths.

-5

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The Economics of Turdistan - 6-Aug-11 13:55

Why is it that my banks standard rate (excluding any new customer only offers) only give me 0.25 % interest on my savings think I was getting .08p a month on a deposit of 500 quid and yet their loans cost 7.5% that's a massive difference no wonder they can get bonus of 2 million and no one can save up a deposit to buy a house . Then there's cheeky MPs who fiddle there expenses are getting upset about overtime paid to consultants in the NHS who save people lives spent years studying and continue to learn all there career unlike MPs who are no more ski11ed than a double glazing salesman . Seems like the better you are at talking and the less ski11ed you are the bigger pay you get .

-5

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Toasty - 18-Jan-11 15:49

UK banks are charging higher spread over libor then any other countries in Europe. The UK comsumer are financing the bonus for very banker who got us here. The spread between GBP libor and the lending rate should be 100bps to 150bps at most but we are getting charged at 250bps to 300bps above the interbanking rate. it is not the banks are not lending but they are charging us like we all are sub-prime lenders.

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John ex-trader. - 2-Dec-09 18:17

here,here I quite agree with rates at 0.5% why am I paying something like 9.5x that to my mortgage lender !!!!!

-3

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Russkie - 19-Oct-09 22:00

Well that one was obviously not me either! I am waiting to hear from the site administrators.

+10

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grumpyoldwoman - 12-Aug-09 08:27

God is currently in charge of the economy. If you are a non-believer, God won't help you. What does the dollar note say? In God We Trust! Put not thy trust in thy fellow man. Render unto Caesar that which is Caesar's. As the one who has committed incest said: "Love thy brother".

As the priest said: "Thy will be done." And have mercy on us all. Pay your dues. And that which is due to you will come.

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A Scotch Prayer - 12-Aug-09 00:37

I"ve just eaten a Budgens sheperds pie for my supper, Right nice it was, much better than sainsburys ready meals.

-4

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grumpyoldwoman - 12-Aug-09 00:20

it makes me sick to see how the banks are scamming people with such high interest rates on financial services products. BOE dropping the rates to 0.5% doesnt help the public,

+15

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mo - 11-Aug-09 23:56

What I can never work out is that the government of the day put all sorts of measures in supposedly to help the ordinary man/women in the street, then do nothing about anything when the big fat cat banks say we are going to do what we want and not pass it on. What was the point of the excercise in the first place. Shouldnt any government worth its salt put policing measures in to make sure that what they want for the ordinary people happens when they take such measures. Its like the billions of pounds they have poured into the NHS, where has it gone, not to you or I; or at least I cannot see any benefits; I would though if it went into putting more front of staff on show, instead of some faceless manager hoiking up his salary with what should benefit us not them. I know a policing policy may create more civil servants but at least this time the job would have been created for the right reasons, and we may see something for all our hard earned money that the government squander. Its not rocket science to think like this is it??

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Chris - 1-May-09 16:32

The lowest mortgage rate I have found available is 2.29%. Well over the base rate.

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Mustntgrumble - 13-Mar-09 22:28

Mortgage interest rate drops are not benefitting people on a fixed rate mortgage. I lost my job and could benefit from this low rate but can't change our fixed rate mortgage without being penalised - we're tied in for another 20 months. Things are so tough now. It just doesn't seem fair.

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Fixed rate mortgages - 11-Mar-09 21:03

The interest rates are very low now but WAIT! Next year the banks will take a further revenge, by now they must have made billions and at the end of the year when the "recession fairy tale" is completed they will put the interest rates so high that we will have to go and visit them

-4

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SuperBambinoCattivo - 10-Mar-09 16:52

I can't quite work out how cutting the interest rate is supposed to encourage spending. It will only encourage those who don't have the money to borrow more to spend on stuff they don't need, which is how we got into this mess in the first place.

If the rate was increased instead then the people who have saved would have money to spend!!
Hasn't anyone worked that out yet?

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grumpyoldwoman - 10-Mar-09 13:51

"The average interest rate for savers who want instant access to their money is now barely above zero, figures show. The Bank of England said that the average rate for UK instant access accounts - including current accounts - was 0.17% at the end of February."

You're right. Time of the mattress is here.

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Jon - 10-Mar-09 12:18

0.5% - what the hell is going on?

I'd like to know exactly what they are trying to achieve with this. If you've got savings - what's the point? You might as well stuff your cash under a mattress. At least when the mattress goes under, it's only going under a duvet and some clean sheets!

-2

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Banks suck - 6-Mar-09 00:14

There is only one solution and future for this country's economy: total and complete hyperinflation, like that in Zimbabwe.

Don't be horrified. It will take three years to complete and fulfil its course from today to when

€1 = £1,000,000,000,000,000,000

When they will have to abolish the currency altogether

This will completely rescue the Governemnt and future generations of tax payers from impossible debt. The cOuntry, however, will never be able to borrow any money ever again to fund its squandering and wars. The Bond market will die altogether.

If we don't do this the Country's debt will be 7 times the cost of the First World War or more. We cannot afford to pass this kind of debt over to future generations.

Who therefore pays? The current savers and pensioners, of course.

Who should be punished for the disaster that has befallen us? The bankers of course.

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Countdown to Economic Doomsday - 19-Jan-09 22:38

Interest rates, I'm informed, are an economic tool. So what does that make the people that set them and is there anyone left who actually believes the political classes, Lords, M.P's, the rest of the establishment have some "right" to rule us? Now do you understand why you give away your power (to these people) at your PERIL!

+10

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The Speaker - 22-Dec-08 13:20

The interest rate cut means that by Xmas there will be £1 = €1

An effective 28.5% devaluation of the pound in one year.

As Wilson said the pound in your pocket is worthless.

.

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Hyperdevaluation - 17-Dec-08 22:21

The present financial crisis is partly due to a demographic timebomb that has been ticking away under the British economy for 60 years - Hundreds of thousands of Baby Boomers born after world war II. These baby boomers competed for housing, paying over the odds for them in the 1970s. They demanded huge pay rises to fund them. This made Britian completely uncompetitive in the 1980s, 1990s and destroyed our industrial economy which was based on workers renting cheaply.

Housing gradually hoovered up all the spare money in the economy, but Housing was a false god. It did not bring real wealth to the nation. There is not a second generation of Baby-Boomers, not in sufficient numbers, capable of buying or ready to take on the the stock anymore at high prices. The price of houses will plummet hard. In the meantime most of the Baby Boomers have actually paid off their mortgages, and the nation is awash with their spare savings. This has caused interest rates to drop. The nation tried to bring in labour from abroad to correct the balance, but that has not been successful.

It will take two generations to correct. The most immediate solution will be to "bankrupt" and otherwise generally reduce the standard of living of the Baby-Boomers born roughly 60 years ago, with reduced pensions, and penury. They will be forced to sell off their hoems to pay for their old-age. The nation will not have any real pension for them. Such housing can be bought up for renting and low rates. And maybe the nation will once again rise.

-10

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Que Sera, Sera - 13-Dec-08 12:30

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