[Finance] Interest Rates

[Uncle Spielberg]

BoE BR down from 5.25% to 5.00% today. Positive news for borrowers

 

[sparkie]

I wonder if my credit card will reduce interest paid by 1 or 2 pence per month. Probably not.

They only like to increase it for market reasons.

 

[Seagull on the Hill]

BoE BR down from 5.25% to 5.00% today. Positive news for borrowers

This should go on the "Good news" thread.

 

[Cheeky Monkey]

This should go on the "Good news" thread.

Not for those looking to invest money

 

[Seagull on the Hill]

Not for those looking to invest money

Yes, I accept that the interest rate on my savings is likely to drop, and, coupled with the withdrawal of the Winter fuel payment, it will affect my disposable income , but it is good news for those who are struggling to pay their mortgage. It's also good for businesses who may now be able to expand and take on more staff.

 

[worthingseagull123]

Where does the extra money go when interest rates go up?

If my my mortgage goes up by say £50 a month if interest rates go up by 0.5%, where does my £50 extra go? Who pockets it?

 

[crodonilson]

Where does the extra money go when interest rates go up?

If my my mortgage goes up by say £50 a month if interest rates go up by 0.5%, where does my £50 extra go? Who pockets it?

The banks but in turn they should increase the rates to savers so pass it on to people keeping money in the bank.

 

[timbha]

The banks but in turn they should increase the rates to savers so pass it on to people keeping money in the bank.

And in so doing increasing the banks’ profits resulting in more tax being paid giving the government more money to spend, plus increased dividends for shareholders and increased bonuses for bank employees, therefore increasing income tax ……. Everyone’s a winner (except savers who then won’t pay tax on the interest) !!!!