BOE base rate cut unlikely in the immediate future

[Martin@AS Financial]

Predictions seem to change on a monthly basis. However, the latest is that a cut in base rate is now unlikley in the near future.

MPC: No rate cut in foreseeable future | News | Mortgage Strategy

[fullyautomatix]

Did you mean cut or rise ? What use is trying to guess a cut ? It is around .5% now, the most they can cut now is to 0%. Will it make a difference to anything ?

What we should worry more is when they will raise the rates and help out genuine savers and the people who live within their means and start fooking the masses who have amassed debt and enjoyed a culture of low interest debt.

[Martin@AS Financial]

There has been recent speculation of a further decrease in base rate down to 0.25%. In my opinion, the adverse effects will outweigh the positives with pensioners and savers being squeezed even further.

[vetran]

Did you mean cut or rise ? What use is trying to guess a cut ? It is around .5% now, the most they can cut now is to 0%. Will it make a difference to anything ?

They could do more, give everyone who owes them some money free freshly printed cash, oh wait they already do.

[Robinho]

We're not going to recover until they go back up.

[OwlHoot]

They're stuck as a bug in a rug rate-wise now. Raising interest rates will reduce property prices, and thus the value of bank assets.

That will make banks even more wary of lending (and even if they weren't they'd be hampered more by Government rules on lending limits as a percent of assets.)

[Robinho]

That's the thing though, we shouldn't be lending. We need to start saving again.

Trying to get us lending again is attempting to reflate the bubble that existed in the first place. Which is obviously not the way out of the problem.

The fact is the country is well and truely up sh*ts creek, and it's much easier for political parties to keep kicking the can down the road than taking the actual measures to get us functioning again.