Interest Rate Cut coming

[Old Prestonian]

0.3%

At least you'll get your money back after 10y

Albeit, it will have lost value in real terms.

 

[Hair Flick]

More noises about the BoE going to negative interest rates.

 

[monkeytassle]

More noises about the BoE going to negative interest rates.

I put that bet on last week. Was very underpriced. I don't think it happens but I like having the exposure.

 

[bomber]

Borrow borrow borrow,China needs you

 

[S.S.R..]

More noises about the BoE going to negative interest rates.

How does that work? If I go overdrawn, does my bank pay me?

 

[Wilfy]

How does that work? If I go overdrawn, does my bank pay me?

Aye mate, max yourself out.

 

[bomber]

How does that work? If I go overdrawn, does my bank pay me?

They may well charge you more for going overdrawn than when rates were higher,they have to make money somehow,although they do have the magic money tree to call on

 

[Hair Flick]

How does that work? If I go overdrawn, does my bank pay me?

No idea how it works out with individual retail banks, it's the rate the BoE pay or charge in interest for the banks to hold their money at the central bank. It would be interesting to see if some mortgage rates based on BoE rate ++ operate if the rate goes negative.

What it does mean is that they are flagging that they want you to spend rather than save to kick start the economy.

 

[bomber]

No idea how it works out with individual retail banks, it's the rate the BoE pay or charge in interest for the banks to hold their money at the central bank. It would be interesting to see if some mortgage rates based on BoE rate ++ operate if the rate goes negative.

What it does mean is that they are flagging that they want you to spend rather than save to kick start the economy.

more like borrow to kick start the economy,China's

 

[monkeytassle]

No idea how it works out with individual retail banks, it's the rate the BoE pay or charge in interest for the banks to hold their money at the central bank. It would be interesting to see if some mortgage rates based on BoE rate ++ operate if the rate goes negative.

What it does mean is that they are flagging that they want you to spend rather than save to kick start the economy.

Charles bean back in 2013 wrote a letter regarding negative interest rate policy to Andrew Tyrie. Good explanation in there if you're really bored. It's all on the bow website which is very Google friendly. I did a fair amount of research on it in the last fortnight.