UK interest rates slashed to 3%

Discussion in 'Current Affairs, News and Analysis' started by whitecity, Nov 6, 2008.

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  1. More proof that the UK economy is in the serious pooo!

  2. (adopts Aussie accent) Crikey! (drops Aussie accent)

    Oh well, it's not like it's going to be passed on through the banks anyway. Gotta love that Abbey!
  3. Well it might be passed on in their savings accounts!
  4. in_the_cheapseats

    in_the_cheapseats LE Moderator

    That's guaranteed. Hope you got a fixed rate deal in the last couple of weeks. Quids in if you were.
  5. I have a tracker.....I'll be saving approx £210 a month! Happy days!
  6. Great news in terms of what it could do, not getting passed on by the Banks though , which is a concern.

    Having said that , is it being passed on by those Banks effectively under Government control?
  7. Not necessarily - note articles today about Northern Rock not passing on rate reductions.

    however, lets keep this in prespective - IF you currently have a mortgage, you will see reduction (as long as it's not a fixed - unlucky then!)
  8. Still doing better than Serbia though :D

  9. No sign of panic then.

    Quick take your money out of savings accounts.

    Buy dollars quickly because the pound could go into freefall
  10. I am about the same, Moved to a tracker in april set at 0.19% above base rate :D :D

    I love this credit crunch malarky
  11. Its not helping my savings. Bastards.
  12. This bailout malarkey is striking me more and more as a one-way street. We plough vast swathes of taxpayers' cash into saving their arrses and in return they... what?

    If the banks are not going to play nice in return, I for one would like my cash back.
  13. Surely though if the banks don't make a profit, you won't be seeing the cash back anyway.
  14. Don't bank on seeing much in the way of reductions. Risk has now been re-priced to a sensible level and, whilst those on tracker mortages may see some benefits, those on fixed and variable rates, particularly new mortgagees, may actually see increases.

    The days of ridiculous mortgage rates of 2-3% will not return for many years. Average rate is 8%, and although I still think we will remain below this historic average, 5-7% would be a sensible and realistic range.

    It is not the function of the banks to save reckless, irresponsible, feckless or merely stupid punters from their decisions to commit to large levels of borrowing, and although some think they may have a moral responsibility to pass on cuts, the imperative is more towards rebuilding their balance sheets and eliminating risky business. This indicates that both savings and mortgage rates will remain relatively high.

    Interesting article from Robert Peston below.

    e find mortgage rates going up.