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Down again another 1%, hope they ignore it for savers as inflation is double the current BOE new rate.
It's now down to the 1951 level. Any further down and it'll be the lowest rate from Threadneedle Street ever.
How can they ignore it for savers?
If the banks are to reduce the rates they lend at then, as night follows day, they have to reduce what they pay to borrow (ie from savers).
So, yes, we savers are about to be clobbered again, unless you had planned for fixed interest rates back in Sep/Oct.
If you the people who are lucky enough to be the severs of this world complain of low interest rates, then what are we to say to the mortgage payers when the rate increases as it surely will eventually and they have to pay more for their mortgage? Who is it that we are suppose to sympathise with, the savers or those who have a mortgage to pay.
I certainly know where my sympathy lays.
Actually the borrowers do not know how lucky they are, my first mortgage was at 7%, and eventually for a while rose to 18%, just because many people borrowed far above their ability to repay, why should those of us who have been a bit more thrifty have to suffer. The main reason that this is being done is that in my opinion there is going to be an election around the corner and Mcduff is running scared, so is making himself look good by promising to tax the higher earners and at the same time gaining approval from the middle class by helping them out with their mortgages. People should remember that borrowers used to get tax relief on their mortagage repayments which all party's took away, but still taxed the savers.
I wasn't asking for sympathy, merely explaining that savers will suffer as well as borrowers, since it is the savers who actually provide the money for others to borrow!
If some people didn't have savings then where would all the mortgages come from for others to buy houses, cars etc?
lofty29 makes some good points, I also well remember getting my mortgage staements with interest up around 15%. Today these rates are forgotten.
"the people who are lucky enough to be savers"
It's funny you know, the more I studied the harder I worked and the more I did without luxuries to afford the necessities of life, the luckier I got.
"Actually the borrowers do not know how lucky they are"
I don`t think so.
It is you savers who are the lucky once. There are people who through no fault of their own were never able to save anything in their lives.
As stated on the TV this morning by a banking executive there are far more savers than borrowers.
As Lofty29 said, I also first had my mortgage when interest rates were well into double figures.
I echo what Switcher said. Its not 'lucky' being a saver, its doing without luxuries and not wasting your money when you can't afford it.
So many people these days think that the only 'Social Life' they can enjoy is spending money getting legless a couple of times a week, then complaining when they can't afford the necessities of life.
I worked hard for my money for over 40 years and by judicious management of my money ended up with a nice nestegg for my retirement. Up till now this has brought in sufficient to top up my company pension without having to touch the Capital (I'm not old enough for the State Pension yet), but the recent fall in interest rates paid mean that I will probably have to start drawing on my capital, thus reducing my interest even more.
And before anyone starts bemoaning their fate just remember its the Investors in banks that provide the money for the borrowers, and the interest that borrowers pay that hopefully makes me keep my money invested!.
This doesn't help those who have worked hard all of their lives (perhaps have been fortunate enough to be able to work) and then been able to save something. It does help those who have borrowed too much or have taken money that was thrown at them by irresponsible lenders.
I suspect that this is aimed at companies that require credit to keep going and therefore stop laying off staff.
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