Bank of England Interest Rate Cut
- Kwacky
- Posts: 38976
- Joined: 21 Oct 2013, 21:52
- Your Bike: Brutale 800RR, 1000SX Ninja
- Location: Brum
- Has thanked: 4362 times
- Been thanked: 8416 times
Bank of England Interest Rate Cut
From 0.5% to 0.25%
While that sounds good, the rest of the article makes for depressing reading.
http://www.bbc.co.uk/news/business-36976528" onclick="window.open(this.href);return false;
The extensive package of measures comes despite the central bank predicting that inflation would rise above its 2% target as a result of the falling value of the pound.
A weaker pound makes imported goods more expensive, which boosts inflation. The pound fell by 1% against the dollar following the Bank's announcement.
The Bank has warned that there will be "little growth in GDP in the second half of the year" although the forecast for 2016 growth has been left unchanged at 2% as a result of stronger-than-expected growth in the first half.
The forecast for 2018 has been cut from 2.3% to 1.8%.
The rate of unemployment is expected to rise to 5.4% next year and 5.6% in 2018.
The decision to cut interest rates to 0.25% was approved unanimously by the nine members of the Monetary Policy Committee (MPC) and is the first change in interest rates since March 2009.
While that sounds good, the rest of the article makes for depressing reading.
http://www.bbc.co.uk/news/business-36976528" onclick="window.open(this.href);return false;
The extensive package of measures comes despite the central bank predicting that inflation would rise above its 2% target as a result of the falling value of the pound.
A weaker pound makes imported goods more expensive, which boosts inflation. The pound fell by 1% against the dollar following the Bank's announcement.
The Bank has warned that there will be "little growth in GDP in the second half of the year" although the forecast for 2016 growth has been left unchanged at 2% as a result of stronger-than-expected growth in the first half.
The forecast for 2018 has been cut from 2.3% to 1.8%.
The rate of unemployment is expected to rise to 5.4% next year and 5.6% in 2018.
The decision to cut interest rates to 0.25% was approved unanimously by the nine members of the Monetary Policy Committee (MPC) and is the first change in interest rates since March 2009.
- Kwacky
- Posts: 38976
- Joined: 21 Oct 2013, 21:52
- Your Bike: Brutale 800RR, 1000SX Ninja
- Location: Brum
- Has thanked: 4362 times
- Been thanked: 8416 times
Re: Bank of England Interest Rate Cut
I don't think you're missing out by much to be honest, unless you've got a massive mortgage.
- C00kiemonster
- Posts: 8522
- Joined: 22 Oct 2013, 07:11
- Your Bike: Triumph Street Triple 765 R
- Location: Not Froggie Land
- Has thanked: 4382 times
- Been thanked: 1756 times
- Monty
- Posts: 6737
- Joined: 12 Mar 2014, 07:59
- Your Bike: KTM 690 SMC R
- Location: Peak District
- Has thanked: 2139 times
- Been thanked: 2458 times
- D41
- Posts: 13166
- Joined: 22 Sep 2014, 11:36
- Your Bike: Triumph Daytona 650.
- Has thanked: 4331 times
- Been thanked: 1145 times
Re: Bank of England Interest Rate Cut
1% against the USD??......Does the UK even import anything from the US, or is that just used as an benchmark example??
What is minimum wage in GB??
What is minimum wage in GB??
- D6
- Posts: 2781
- Joined: 14 Mar 2014, 18:26
- Your Bike: Speed Triple 1050SE a bit DEAD + S3 RS
- Location: Staffordshire
- Has thanked: 212 times
- Been thanked: 653 times
Re: Bank of England Interest Rate Cut
No we buy good well built things so rarely import from usa
Sent from my LG-D855 using Tapatalk
Sent from my LG-D855 using Tapatalk
Last edited by D6 on 04 Aug 2016, 17:25, edited 1 time in total.
- Blade
- Posts: 18772
- Joined: 14 Mar 2014, 18:43
- Your Bike: Kawasaki ZX10R
- Location: North West
- Has thanked: 3134 times
- Been thanked: 3767 times
Re: Bank of England Interest Rate Cut
As cookie says will have limited benefit to borrowers but further pain for savers and pension funds.
- duke63
- Posts: 15525
- Joined: 22 Oct 2013, 07:34
- Your Bike: Ducati 748/853 & Triumph Street Triple 765RS
- Location: Staffordshire
- Has thanked: 4199 times
- Been thanked: 4133 times
Re: Bank of England Interest Rate Cut
Won't be long before the banks are charging you for having money in your account. It's already about to happen for business accounts.
- Blade
- Posts: 18772
- Joined: 14 Mar 2014, 18:43
- Your Bike: Kawasaki ZX10R
- Location: North West
- Has thanked: 3134 times
- Been thanked: 3767 times
Re: Bank of England Interest Rate Cut
How could that work though Duke as people would just move there money out and then how would the banks have an equity/cash ?
- duke63
- Posts: 15525
- Joined: 22 Oct 2013, 07:34
- Your Bike: Ducati 748/853 & Triumph Street Triple 765RS
- Location: Staffordshire
- Has thanked: 4199 times
- Been thanked: 4133 times
Re: Bank of England Interest Rate Cut
Where would you move it to if they all do it?
It's symptomatic of a broken system if you ask me. Save money for a rainy day and they will make you pay for it.
It's symptomatic of a broken system if you ask me. Save money for a rainy day and they will make you pay for it.
- Blade
- Posts: 18772
- Joined: 14 Mar 2014, 18:43
- Your Bike: Kawasaki ZX10R
- Location: North West
- Has thanked: 3134 times
- Been thanked: 3767 times
- C00kiemonster
- Posts: 8522
- Joined: 22 Oct 2013, 07:11
- Your Bike: Triumph Street Triple 765 R
- Location: Not Froggie Land
- Has thanked: 4382 times
- Been thanked: 1756 times
Re: Bank of England Interest Rate Cut
Been happening for years in Europe. We have to pay for our overseas accounts.duke63 wrote:Won't be long before the banks are charging you for having money in your account. It's already about to happen for business accounts.
- Kwacky
- Posts: 38976
- Joined: 21 Oct 2013, 21:52
- Your Bike: Brutale 800RR, 1000SX Ninja
- Location: Brum
- Has thanked: 4362 times
- Been thanked: 8416 times
Re: Bank of England Interest Rate Cut
they charge you for every foreign transaction.Blade wrote:Overseas banks I guess.
- Blade
- Posts: 18772
- Joined: 14 Mar 2014, 18:43
- Your Bike: Kawasaki ZX10R
- Location: North West
- Has thanked: 3134 times
- Been thanked: 3767 times
Re: Bank of England Interest Rate Cut
If it's savings there would be minimal transactions though.
I guess the only risk is whether your money is safe as look what happened with the iceland banks.
I guess the only risk is whether your money is safe as look what happened with the iceland banks.
- D41
- Posts: 13166
- Joined: 22 Sep 2014, 11:36
- Your Bike: Triumph Daytona 650.
- Has thanked: 4331 times
- Been thanked: 1145 times
Re: Bank of England Interest Rate Cut
Right around 10% of UK imports come from the US, so hardly rare....more like fairly substantial. Has been that way for quite some time. However you are correct...no-one forces the UK to buy them, but they do anyway.D6 wrote:No we buy good well built things so rarely import from usa
Sent from my LG-D855 using Tapatalk
- D41
- Posts: 13166
- Joined: 22 Sep 2014, 11:36
- Your Bike: Triumph Daytona 650.
- Has thanked: 4331 times
- Been thanked: 1145 times
Re: Bank of England Interest Rate Cut
LOLZ!!
In all seriousness, I know where you're coming from.....US made products were shite for years, and for numerous reasons...especially the labor laws designed to 'protect' US jobs....they had the opposite effect.
And the old American 'muscle cars' were never actually anywhere near as good as people would have you think.
BUT....consider this.......Toyota now has it's HQ in the US.......Nissan builds vehicles all over the World too.
The BMW MINI is an iconic British car (designed by a Greek)....now owned by a German company, building American designed cars in the GB with engines manufactured in Brazil by a co. owned by Mercedes=Benz.....!
This stuff has gone on for generations....we're just more aware of it now.
Oddly enough, a Harley is one of the few things you can buy and have a reasonable expectation of turning a profit on when you come to sell it.
In all seriousness, I know where you're coming from.....US made products were shite for years, and for numerous reasons...especially the labor laws designed to 'protect' US jobs....they had the opposite effect.
And the old American 'muscle cars' were never actually anywhere near as good as people would have you think.
BUT....consider this.......Toyota now has it's HQ in the US.......Nissan builds vehicles all over the World too.
The BMW MINI is an iconic British car (designed by a Greek)....now owned by a German company, building American designed cars in the GB with engines manufactured in Brazil by a co. owned by Mercedes=Benz.....!
This stuff has gone on for generations....we're just more aware of it now.
Oddly enough, a Harley is one of the few things you can buy and have a reasonable expectation of turning a profit on when you come to sell it.