Expected Rate Cut Today

[nicebloke1]

Bank of England expected to cut rates today, good news yes? Great for mortgage holders, yes? All the hype about mortgages going up under labour? Naaa. Of course it will be disappointing news for the tory supporters. <:0) Keep up the good work SK.

[bednobs]

it's good for me asi have a tracker mortgage , but not for many i suppose

[nicebloke1]

Good news AB's ??

[bednobs]

as i just said, yes, for me

[pastafreak]

I don't have a mortgage. It may affect my daughter and her partner though. 

[youngmafbog]

For some bizare reason you forgot a link just like our 'mate'. So I'll add some context

//

The Bank of England has cut interest rates to 4.5pc in a surprise vote that saw two members vote for even steeper reductions.

The Monetary Policy Committee (MPC) voted 7-2 to cut rates as it slashed its growth forecast for 2025 in half.

Officials warned that there were increasing signs that Rachel Reeves’s record tax raid was dragging on the economy, which is predicted to barely avoid falling into recession.

Two MPC members, Catherine Mann and Swati Dhingra, called for a bigger rate cut of half a percentage point to 4.25pc, as they warned there were signs that the economy was slowing faster than expected.

The pound sank by 1pc against the dollar as traders ramped up bets on further interest rate cuts, favouring another three reductions by the end of the year.

Bank staff now believe the economy will expand by just 0.75pc this year, down from a projection of 1.5pc just three months ago.

Its latest economic forecasts warned of a stagnating economy, higher inflation and rising unemployment against the backdrop of a £40bn tax raid that will hit low-paid workers hardest.//

The Telegraph

[nicebloke1]

Well thats one gloom and doom monger, anymore? :0)

[youngmafbog]

Err, its the story mate, you just forgot to tell the whole truth - as usual.

[nicebloke1]

The truth? Rates are down, TRUTH.

[youngmafbog]

Yes and the reason is what I have outlined above.  Abject failure from the labour Party so they are cutting rates in a desperate atempt to counter Reeves' budget.  It wont work though becuase labour are making the UK not a place to do business.

A meagre rate decrease, which wont affect many mortgages in the slightest is nothign compared to the extra burdon put on the polulation by labours inability to count.

[naomi24]

You're conveniently missing the 'but'. Nicebloke... as usual.

 

//UK will only narrowly avoid a recession, says Bank//

 

https://www.bbc.co.uk/news/articles/c0lzj3g77gpo

 

[nicebloke1]

Rates are down, not up. :0)

[youngmafbog]

Yup and he missed this little nugget that totally annihilates any benefit a small rate decrease might have to a minrity of people

"The pound sank by 1pc against the dollar"  I doubt he realises though that the dollar is used for many purchases outside the US - like oil!

[youngmafbog]

You just cant see past the end of your nose can you?

[New Judge]

"I doubt he realises though that the dollar is used for many purchases outside the US - like oil!"

And gas.

It's remakable how some people are easily duped. The UK imports between 60% and 70% of its gas supplies (despite sitting on billions of cubic metres of the stuff which we refuse to extract) and gas is needed in vast quantities to generate electricity – even greater quantities when the wind doesn’t blow and the sun isn’t shining. Although the gas is purchased in the currency of the exporter, the global gas market is priced in $US.

This interest rate reduction will benefit few people directly. It is unlikely that mortgage rates will fall significantly. It is also unlikely to affect the amount it costs to service the national debt as most of this is in the form of fixed long term bonds.

The reason for his reduction is certainly down to the Labour government. It is a reaction to the UK’s economy being slaughtered over the past few months. This has stifled growth and hit consumer spending. Inflation is forecast to rise again later this year when increased energy and water bills filter through, council taxes are increased and prices rise generally to cope with the £40bn the Chancellor extracted from the economy in her budget.

It will take more than a few quid off some people’s mortgages to counter that lot. 

[youngmafbog]

44.8% from gas today - and its a sunny day!

[Boto]

It's always about the mortgages but what about savings?  Do people with savings not matter?

[gulliver1]

Well done again Labour .The Tories put the bank rate up and trash the economy, especially under the short reign of lettuce Truss. Then the public get wise and kick them out and vote Labour into power.🤣And things start to get  better immediately. Woo hoo 🤣

[gulliver1]

So this good news of the Bank rate going down already under this new Labour Govt, can only mean that Labour have cleared up the   £22 billion black hole debt the Tories left behind.Things soon got better then.

[davebro3]

you're losing touch with reality gully!🤣

[New Judge]

"Do people with savings not matter?"

As you will realise if you look at the rates from March 2009 (when i dropped to 0.5%) and May 2022 (when it crept back up to 1.0%) the answer to that question is "No".

In that time it never reached 1% and dropped to as low as 0.1% during the pandemic. Effectively people were lending their money to the banks for nothing and others were borrowing it for slightly more than that.

This was a time of "Quantatitive Easing" (aka printing worthless money). The country is still suffering the after effects, and will continue to do so for some time.