The Bank of England has reduced the headline rate of interest by 1.5% to 3% – the lowest rate in 53 years, apparently.
All of which is good news to those people struggling to pay the stupid mortagages on their stupid houses that they can’t afford to pay. Assuming, that is, that the banks pass on the full 1.5% rate cut and soon.
Dropping the interest rates is a proven way of giving the economy a nudge when it’s looking a bit poorly and if and when the rate is passed on it might just ease the decline into recession slightly. It won’t stop it happening, it’s too late for that, but it will probably help.
Of course, it won’t do anything unless the banks pass the rate cut on to us plebs which raises an interesting question – will the Treasury use the golden shares it’s brought in the main high street banks to force a cut in the interest rates if they are unwilling to take the hit on their earnings?
Technorati Tags: Bank of England, Economy, Recession, Interest Rates
Is the treasury using Golden showers to impose its will, not wrong and immoral, especially since we are not pauying for the pleasure?
Ohhhhh, we will be being paid, by reduced mortgages, do I hear the sound of unzipping flies all over Whitehall?
Being water boarded by Darlo and his salty sausage would be bad enough but do you think Gordo would want to join in to hose you down with the number 10 ‘kaldy spesh?
Sausages aside, didn’t America cut interest rates, again and again and again?
axel, I often enjoy your comments, but these two reach well beyond my limited comprehension; who is ‘Darlo’ (Alastair Darling?), and what’s all that about salty sausages and ‘Kaldy spesh’??
I was only going to remark that the interest rate cut is not much Christmas cheer for those of us who have paid off our mortgages, never owned a credit card or taken out a loan, but have saved and invested all our working lives. Boo Hoo!
ps; according to Pravda there are 8 times as many investors in this country as debtors; so which way should we vote?
Stead
I’m speaking Jockishstani, Darlo=alistar darling, salty sausages= non washed pork swords, ‘kaldy spessh=Kirkaldy Special brew=very cheap, high alcohol volume nastiness, sold in plastic bottles from corner shops, which ethnically, you will probably clean drains or paint brushes with but we up here, drink.
I love this site and just wish I was as smart as you guys but maybe I can at least give you a smile?
It’s better to keep your mouth shut and give the impression that you’re stupid than to open it and remove all doubt. 🙂