ECB Rate

B

Berbatov

Registered User
Messages
51
All the signs are that the ECB rate is coming down another 0.5% this coming thursday to a record low of 1% - Happy days for people on trackers.
 
As I have said before, don't get too excited.

The Tax man will take it away from all of us next week!!
 
Mr DT said:
As I have said before, don't get too excited.

The Tax man will take it away from all of us next week!!
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This should ease the pain and go some way to covering the majority of peoples additional 1% income levy that should be announced next tuesday.
 
Berbatov said:
This should ease the pain and go some way to covering the majority of peoples additional 1% income levy that should be announced next tuesday.
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only 1% additional extra?

you sir, are an optimist. I believe the axe will fall much heavier than that
 
Kemo_Sabe said:
only 1% additional extra?

you sir, are an optimist. I believe the axe will fall much heavier than that
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1% , 2% , 3% at present increased to 2%, 4% and 6% across different payscales...most economic commentators ive listened to think its going to fall that way.

and why i say increased by 1% is because i believe the majority of people in ireland are not earning more than 100k !
 

let's revisit this next Tuesday afternoon

if you are right, I will be very happy
 
My, but aren't there lots of "glass half empty" characters around this morning? Would you prefer the tax increases and no ECB rate cut?
 
LDFerguson said:
My, but aren't there lots of "glass half empty" characters around this morning? Would you prefer the tax increases and no ECB rate cut?
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I'm fixed until 2011 so don't care what the ECB do!

(in fact, my savings account gets whacked so it's all bad - put the rate UP there JCT wouldya )
 
LDFerguson said:
My, but aren't there lots of "glass half empty" characters around this morning? Would you prefer the tax increases and no ECB rate cut?
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I am glad this is about to happen as have a tracker of +.75% so all good here. We have been reduced to one income for over a year to the my husbands ill-health so every cent counts!!!
 
I am delighted if this happens. On tracker .5% above ECB. Wages dropped almost 1 K per month since start of yr. but thankfully have a job.
 
This is a disaster. By cutting the interest rates again, savers will no doubt suffer. A lot of these savers will now withdraw their money from the banks. Two problems with this:

1. The banks will have less money to loan out to businesses
2. The ex-depositors might get involved in risky speculation and end up being ripped off.

Eventually, with QE of the ECB, high inflation is a real threat in the future. The ECB will be forced to increase the interest rate dramatically.

The more the government and central banks get involved, the bigger the mess they make.
 
After this next rate cut i'll defo think long and hard about fixing interest rate and coming off tracker, coz i would imagine with the ECB rate being 1% there would be some nice fixed rates on offer from the banks so they can get customers off trackers. High inflation in the future is a worry alright.
 
If they do drop to 1% and make an announcement that this is as low as they are willing to drop (very possible). then fixed rates may actually go up. The banks are trying to predict the future and the only way is up when at the bottom. EBS has already increased their 10yr fixed.
Although changes of about 0.1/2% are probably all the increases for the short term.
 
Berbatov said:
High inflation in the future is a worry alright.
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Economic theory would suggest inflationary risk but i don't see this happening for a while, if anything are we not heading for deflation?

The ecomony has fall of a cliff, people are accepting pay cuts to keep there jobs, etc etc. I don't think we need worry about infaltion at this moment in time.
 
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