ECB Rate drops to 1.5%

I

irishlinks

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Just announced - down by 0.5%. Bank of England rate also down 0.5% to 0.5%. How low can they go??
 
Re: EBC Rate drops to 1.5%

They say that they will not make further cuts but if this rate does not work then they will have to print money.... like what happened in Japan during the 80's, but that did not work for them, UK will have to wait and see if it works for them.....

http://news.bbc.co.uk/1/hi/business/7925620.stm
 
Re: EBC Rate drops to 1.5%

it dont matter. the banks will stop passing on these cuts in full soon. they cant be made do it by the govt and they will want to increase their own profits by being able to lend a far higher rate then they are getting the money for. its important that they do actually as we need ot see the banks make money again for the world economy to stabilise. i would be very surprised to see all the banks pass on this cut
 
Re: EBC Rate drops to 1.5%

oh well yeah, sorry forgot to mention tracker.
 
Re: EBC Rate drops to 1.5%

spursfan1234 said:
it dont matter. the banks will stop passing on these cuts in full soon. they cant be made do it by the govt and they will want to increase their own profits by being able to lend a far higher rate then they are getting the money for. its important that they do actually as we need ot see the banks make money again for the world economy to stabilise. i would be very surprised to see all the banks pass on this cut
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It was said that the irish banks will most likely pass on the full drop.

The govt. has to make sure the cuts get passed on. If we're gonna be screwed with new taxes, the least the govt. can do is make sure after the bailouts, that we get the benefit of rate drops..
 
Re: EBC Rate drops to 1.5%

probably increases the chances of TRS relief being removed next month by the Govt
 
Re: EBC Rate drops to 1.5%

I'd like a rate of -1%, where you pay back less than you borrowed!!!!!!!
 
Re: EBC Rate drops to 1.5%

Mpsox said:
probably increases the chances of TRS relief being removed next month by the Govt
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with the rates coming down and trs being based on interset paid,
less interest is being paid
so they are inturn paying less trs
than say 6,5,4 months ago.
 
To the normal man in the street, and indeed the economies, these interest cuts are not working, at all.

They are pointless.
 
RMCF said:
To the normal man in the street, and indeed the economies, these interest cuts are not working, at all.

They are pointless.
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Surely for everybody it reduces the costs applicable to all borrowings. Mortgages, credit card balances, overdrafts will all become cheaper. In fact the rich are hit as the deposit interest rates will become non relevant.
 
RMCF said:
To the normal man in the street, and indeed the economies, these interest cuts are not working, at all.

They are pointless.
Click to expand...

Have to say they have helped me. Reduction in mortgage offsetting wage cut at the moment.
 
To the 2 posters above me:

I appreciate how cutting interest rates is meant to work and kickstart the economy, but its obvious that people are NOT spending any of the money they are saving each month, and as a result they are not having the effect they are meant to have.

I too have seen my mortgage decrease and am spending exactly the same as I used to. But I feel that too many people are watching their spending and so the recession deepens.
 
Does anyone know what banks/institutions are passing on the cuts, either in part or full?

Haven't heard anything from anyone!
 
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