Bank of England Interest Rate Cut

[Kwacky]

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.

[D6]

Damn fixed my mortgage for 10 years. lol. Didn't expect it to go any lower

[Kwacky]

I don't think you're missing out by much to be honest, unless you've got a massive mortgage.

[D6]

With just moving and a baby I wanted stability so don't mind.

[C00kiemonster]

i just got poorer again

Waste of time this cut imo.

[Monty]

On the bright side, I haven't got any money!

[D41]

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??

[D6]

No we buy good well built things so rarely import from usa

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[R34PER]

What is minimum wage in GB??

£6.70/hr

[Blade]

As cookie says will have limited benefit to borrowers but further pain for savers and pension funds.

[duke63]

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]

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]

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.

[Blade]

Overseas banks I guess.

[C00kiemonster]

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.

Been happening for years in Europe. We have to pay for our overseas accounts.

[Kwacky]

Overseas banks I guess.

they charge you for every foreign transaction.

[Blade]

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.

[D41]

No we buy good well built things so rarely import from usa

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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]

Yeah i agree. 10% of our imports are poorly made tat

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[D41]

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.