Bank of England cuts interest rates to 4%

https://www.financialreporter.co.uk/bank-of-england-cuts-interest-rates-to-4.html

by gemushka

17 comments

  1. Everyone’s going to cut hard next year anyway when JP is out of the US fed. Quarter points will seem quaint.

  2. inflating away some of our debt doesn’t seem like the worst idea in the world to me..

  3. I don’t think we should be decreasing with inflation not under control.

  4. Yay, but I dont this is going to turn the tide on any of our economic problems.

  5. It’s a joke

    “The market is so unstable right now guys, better lock in for 5 years in case it goes higher”

    Everyone locks in

    2 weeks later:

    “Hey guys we’ve cut the interest rates, look how well the economy is doing! Aren’t we so generous! The interest rates are lower so that means you’re paying less!”

  6. That massive £25 a month reduction in mortgage will sure come in handy.

  7. Great news.

    Hopefully the trajectory on inflation will head downwards in due course. 

  8. Inflation is at 4.1% for June, with housing at 6.4%. The fact that they are cutting it to 4%… is a bit of a gamble. I am not sure what to make of it.

    Currently, this to me is a bad omen, but let’s see.

  9. Wonder how long it will take for the SVR on my mortgage to drop (currently 7.5%).

    Before anyone jumps in, my outstanding mortgage amount is £47.26, I have monthly payments of 43p for the next 15 years.

  10. Banks will say they have already priced this into mortgage rates as I can’t see any changes in my interest rate for my mortgage as I’m due to renew.

  11. Can somebody tell me why this is a blow to Rachel Reeves?

  12. I’m confused  – is this a BLOW FOR REEVES, or BOOST FOR REEVES?

  13. How much will this reduce how much the government has to pay on debt interest each year?

  14. Gah, more cuts. Mortgage costs go down, but house prices go up. Sucks for people trying to save.

  15. I know we’re always talking about those coming off historically low mortgage rates, and what they’re going to have to deal with when their fix is up… but the flip side of that is the reduction in payments all those people who bought during the Trussonomics era are going to have.

    My fix is up in August and it’s going from 5.29% to 3.88%. Granted, I’ve done some work on my house and moved a few LTVs, but I’m pocketing almost £280 a month. If I wasn’t going to throw most of it as an overpayment, that would be max £3,360 a year breathing room I’ve not had for 2 years to help manage the rising costs of everything else.

  16. Is that wise? We’ve cut interest rates today, said Mr Bailey and it was a very finely balanced decision. Five voted cut the rate and four voted not to cut. Why cut the rate when inflation is on the rise again in the UK? Could it be possible that the UK government are opening more food banks? Edit…Amazing facts… An estimated 2.7 billion tonnes of food goes uneaten around the world each year and its on the increase, why? Then estimates indicate that of all the food grown, a staggering mind blowing 40 per cent goes uneaten. Why is this happening in the 21st century when people are starving to death?

  17. This is going to slowly open the flood gates for investment…hopefully!

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