Big decision day for BoE tomorrow (thurs)

[benb]

Folks,

Will the interest rate go down from 3% to 2.5%?

I certainly hope so.

Cheers,

[PeterB]

Well, you got your wish, and more ... 2%. Not good news for someone who is attempting to live off the interest from his savings! Still, at least some of my funds are now in Phils, and earning 12% (I wonder how long that will last?).

The other factor is that the PNB exchange rate for today is 71.55 pesos to the pound, with the Forex rate currently hovering around 72.

[Piamed]

Cock-a-doodle-doooooo! 2%. I do feel sorry for savers though! I ain't go no money to save just a rather large tax bill, so i'm alright Jack.

[aromulus]

I always thought that 2% of something is far, far better than 100% of nothing.....

[benb]

2% - WOW!

Savers may want to invest instead rather than holding it in the bank. Actually, those with cash now are in a better position - houses are cheaper, stock markets are low etc.

Cheers

[KeithD]

Anyone with spare cash can spend it on me

[andypaul]

The 2 percent and soon ZIR you may regret in the long term if you want a decent pound to other currencies, no deflation to murder your mortage and then the costly transtion to the Euro

Houses and stock markets to go lower, so anyone sensible enough to save money and not get sucked in to the buy now pay later will not be daft enough to waste it now.
Anyway I can get huge intrest rateson my savings the banks are crying out to borrow our money.

Also the thinking is that intrest rates will rocket in lets say two years. Maybe a tad less.

Anyway as your children/grandchildrens tax money is being spent now maybe best to start saving for both yoursleves and them.