HSBC Promo Forum
Bank of England Base Rate Cuts? Mortgage and financial experts are predicting more Bank of England base rate cuts this week.
An amazing prediction of as much as a 1 per cent rate cut could be viable as the Bank of England try to blast the UK economy back to life in the hope that we can avoid recession. Personally I think this is too little and certainly far too late - All ‘normal’ UK households have felt the recession for the last 6 months, at least. Reposessions are up, petrol, heating and food bills are up, so where does the Bank of Englnad think the average UK household has been for the last year or so??
The UK economy needed an interest rate cut months ago.
Even if interest rates are cut by this much it is very unlikely the banks will pass them on to borrowers, don’t forget it isn’t compulsory for banks to cut interest rates in line with the Bank of England base rate. You can bet that most UK banks will use the rate cuts as a means to claw back some of the money that has been lost because of bad debts being remortgaged or repackaged with yet more bad credit deals.
I don’t think a rate cut will make much difference to the UK’s spending on the high street.
---Stanley Ames, Essex, England
HSBC Chatbox
The Many Faces of HSBC - The World's Local Bank...
HSBC: Lumberjack Television Ad...
Bank of England - Financial Stability Report 2010
Click to download PDF Report directly from Bank of England.
