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IMF want UK interest rates to drop to 0%
- Thread starter Chicken Runner61
- Start date
RexCathedra
Aurea Mediocritas
Would that be John Maynard, or his brother, Milton?
J.M.K
Tracker rates are often +/ - the lending bank base rate though not BoE and there is no compulsion to follow suit. I can't see banks reducing their base rate to zero.
vegster
Sanity Clause
- May 5, 2008
- 28,272
I knew you had to be good at something !
vegster
Sanity Clause
- May 5, 2008
- 28,272
On a more serious note, I'm pretty sure that any cut in interest rates would be unlikely to be passed on to the consumer. it would just increase the margins for the banks and building societies. Add to this the Beechcroft Solution, employment laws being relaxed to allow " No Fault " dismissals, and we have almost managed to return to feudal times and ergo,wage slavery.
Will it really make any difference we dropped the rate by 5% and it does not seem to have fixed the problems what will another 1/2 do? I can't help feel the banks will simply ignore the drop and do their own thing meaning we lose out and the banks profit the opposite of what they intend.
Chicken Runner61
We stand where we want!
- May 20, 2007
- 4,609
- Thread starter
- #28
Well the Jap ones did
GingerBeerMan
3-0
- Dec 29, 2011
- 8,204
Nice to see an intelligent thread, with no bitching initiated by the inhouse troll Kraay.
As quickly as you posted this comment, a binfest could insue, so don't get too complacent yet
P.S. enjoying the mortgage talk.
Lord Bracknell
On fire
What caused the crisis in the first place was lenders losing money on loans.
And look where it has got them.
Cheshire Cat
The most curious thing..
Reducing the base rate will have no impact on credit card rates, mortgage or loan rates or saving rates.
The current base rate is only 0.5% but credit cards are still charging 15% plus, mortgages are 4% plus and personal loan rates 6% plus, and savings rate 3% at almost best.
Reducing the base rate by a further 0.4999999999% would only increase banks profit magins, with no benefit whatsoever to the average punter.
The current base rate is only 0.5% but credit cards are still charging 15% plus, mortgages are 4% plus and personal loan rates 6% plus, and savings rate 3% at almost best.
Reducing the base rate by a further 0.4999999999% would only increase banks profit magins, with no benefit whatsoever to the average punter.
Beachcroft's proposal got torn apart on Newsnight; no one had any evidence to show that tighter employment law restricted growth. There was a correlation between growth and tighter employment legislation though.
vegster
Sanity Clause
- May 5, 2008
- 28,272
Its very worrying that a Tory think tank would even consider it. Where I work, the staff are not entitled to annual wage reviews and as such have not had a pay rise for several years ,can you imagine someone who is struggling to pay the bills having to gamble their job on asking for a pay rise ? The Tory's are always trying to cut " red tape " to " boost " small businesses but, at what cost? I'm glad I'm not a young person today.... I feel little hope for any sort of future.
Marshy
Well-known member
me too
mine finishes this month so i will be dropping to 2% above base rate cant believe i was considering fixing it again !
Weststander
Well-known member
I have an insight into many firms figures, and meet many businessmen.
Some director shareholders with working class roots who purport to be socialists, are still making very big profits, but are using the flat economy to pin staff down with several years of pay freezes, harsher contracts, and intimidation into longer freebie hours etc.
It's interesting how money lust corrupts, even for so called Thatcher-Cameron haters.
Although no particular effect on me personally, in light of what I've seen, I have become pro employees rights.
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,015
one word: Portugal. very strict employment, growth f***ed (even before the current situation). couple years ago my company bailed out of the portugese operations and transfered everyone to the Spainish office because of the costs.
Beecroft clearly has an agenda, but the key point needs to be considered - shouldn't you be able to sack ineffiecient, poor staff. again first hand experience, it took 3 months of "process" to sack someone who was (unfortunatly) way out of his depth in the job. it would have been better all round if that could have been wrapped up quickly.
i havent read it in detail, im sure it goes too far, but surely such matters should at least be considered? do you recruit someone for a new role, who might be unsuitable, or do you get current staff to cover work load? one costs say 30k, the other nothing.
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vegster
Sanity Clause
- May 5, 2008
- 28,272
It's interesting that on a forum which tends to be heavily populated by pro Tory Thatcher apologists that this thread seems to have withered without major comment ? Maybe even they find this behavior too distasteful ? Even burger flippin' Timmy ?
aftershavedave
Well-known member
this is absolutely correct. few banks have trackers linked directly to base, rather they have it linked to a rather nebulous "bank base rate" which is in turn linked to base. at the time of the first (2008) crisis a number were obliged to define what this actually meant, and most (all?) clarified that it meant base. so they could theoretically change but would be highly embrassed to do so.
I am not sure that the IMF did say that we should cut interest rates.
It commented that the UK has done well to cut the deficit and basically steady as she goes, for now.
But mindful that if growth does not return then the IMF might like to see a cut in interest rates and VAT to stimulate growth.
It commented that the UK has done well to cut the deficit and basically steady as she goes, for now.
But mindful that if growth does not return then the IMF might like to see a cut in interest rates and VAT to stimulate growth.