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    (Original post by TheDefiniteArticle)
    Yes, it is good news.
    Not if you've got savings

    Additional 70bn in QE as well. Kitchen sink being thrown at the problem this time.

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    (Original post by The Financier)
    Not if you've got savings

    Additional 70bn in QE as well. Kitchen sink being thrown at the problem this time.

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    Gotta be looking at the challenger banks... gonna be no point bothering with the big names!
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    (Original post by mobbsy91)
    Gotta be looking at the challenger banks... gonna be no point bothering with the big names!
    Is there perhaps a little disclosure statement to add there mobbsy?

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    (Original post by The Financier)
    Is there perhaps a little disclosure statement to add there mobbsy?

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    Don't think I ever mentioned any names, and if I had any kind of interest in one, I wouldn't be allowed to anyway
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    (Original post by The Financier)
    Not if you've got savings

    Additional 70bn in QE as well. Kitchen sink being thrown at the problem this time.

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    The economy is not looking good.
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    (Original post by barnetlad)
    The economy is not looking good.
    The economy is fine, the base rate being lowered is a minor inconveniance in the long run. It will hurt savers but it will help borrowers, so anyone looking to start up can do so more easily.

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    (Original post by barnetlad)
    The economy is not looking good.
    At this stage I question whether further cuts in the rate will have much effect in stimulating growth. Banks won't lower their mortgage rates much further because ever lower rates also compress the yield differential so they'll make less profit. Those with savings who weren't willing to spend more at 0.5% won't suddenly spend thousands at 0.25%, and arguably will double down on their saving for fears of even lower rates. Equally, I don't think lower borrowing costs will do much now to increase investment if businesses are worried about the possibility of recession.

    The other thing is that given the bank forecasts higher inflation than 2% due to the weakened pound's effect on imports, this is arguably going against their core mandate of controlling inflation, not economic growth.

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    (Original post by Lime-man)
    The economy is fine, the base rate being lowered is a minor inconveniance in the long run. It will hurt savers but it will help borrowers, so anyone looking to start up can do so more easily.

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    Yeah the forecasts are just for much reduced growth, possibly a recession, higher unemployment and inflation and a currency crisis but other than that it's all fine! After all, we've got a #LongTermEconomicPlan of ruining the economy to buy the Tory boys some votes from UKIP
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    (Original post by Lime-man)
    The economy is fine, the base rate being lowered is a minor inconveniance in the long run. It will hurt savers but it will help borrowers, so anyone looking to start up can do so more easily.

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    (Original post by The Financier)
    At this stage I question whether further cuts in the rate will have much effect in stimulating growth. Banks won't lower their mortgage rates much further because ever lower rates also compress the yield differential so they'll make less profit. Those with savings who weren't willing to spend more at 0.5% won't suddenly spend thousands at 0.25%, and arguably will double down on their saving for fears of even lower rates. Equally, I don't think lower borrowing costs will do much now to increase investment if businesses are worried about the possibility of recession.

    The other thing is that given the bank forecasts higher inflation than 2% due to the weakened pound's effect on imports, this is arguably going against their core mandate of controlling inflation, not economic growth.

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    I do not consider lower incomes for pensioners who use savings to avoid poverty to be good. This rate cut will not reduce rents, or enable someone to get a deposit for a house or flat. No-one who uses a food bank will be better off. No more houses are likely to be built as a consequence. The 2017 growth prediction which was 2.3% in May is now 0.8%.

    The UK is one of the largest economies in the world, and the majority of people in the world are a lot worse off (more would be if UKIP's cut in overseas aid happened), but it is not going to get better very quickly, indeed it could get worse.*
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    The cut to interest rates is a desperate attempt to paper over the cracks of an economic system that is beyond saving. The whole argument behind neoliberal economics is that it encourages private investment. Sure it worked for a while, despite all the negatives that came with it, but if they need to cut interest rates so low to try and stimulate investment then it is clearly no longer working. It's 8 years since the recession and investment is still at ridiculously low levels, wages are still well below their pre-recession level, millions upon millions of jobs are unstable, savings are practically worthless and the growth we have had is simply not being felt by your average peasants across the country. How in hell are we suppose to cope with another recession (we were due another one within a few years regardless of brexit) when we still haven't recovered from the previous one? Sooner or later, advocates of neoliberalism are just going to have to accept that it has failed and we need a change of direction.
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    (Original post by barnetlad)
    The economy is not looking good.
    On what basis? There is no hard evidence yet and Carney even admitted that he basically did it on a whim, opting to guarantee things will become worse on the off chance that things may become even worse.

    (Original post by barnetlad)
    I do not consider lower incomes for pensioners who use savings to avoid poverty to be good. This rate cut will not reduce rents, or enable someone to get a deposit for a house or flat. No-one who uses a food bank will be better off. No more houses are likely to be built as a consequence. The 2017 growth prediction which was 2.3% in May is now 0.8%.

    Pray tell who is predicting 0.8%? Even those who were saying Brexit would cause the universe to implode are now saying that growth will remain healthy, even if somewhat more modest, certainly more than 0.8%
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    (Original post by Jammy Duel)
    On what basis? There is no hard evidence yet and Carney even admitted that he basically did it on a whim, opting to guarantee things will become worse on the off chance that things may become even worse.




    Pray tell who is predicting 0.8%? Even those who were saying Brexit would cause the universe to implode are now saying that growth will remain healthy, even if somewhat more modest, certainly more than 0.8%
    The Bank of England.
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    (Original post by Saoirse:3)
    The Bank of England.
    Oh, the morons who just cut rates coz yolo
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    (Original post by Jammy Duel)
    Oh, the morons who just cut rates coz yolo
    translation - "boohoo, I'm not gaining interest on the money mummy put away for me"
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    (Original post by cBay)
    translation - "boohoo, I'm not gaining interest on the money mummy put away for me"
    Ummm, kinda just spent 3 years having a great time at uni, that doesn't tend to come cheap

    Carney did seem to admit as much though.
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    Perhaps the most interesting question yet

    Britain's decision to vote to leave the European Union was the...
    Right decision: 46%
    Wrong decision: 42%
    (via YouGov)

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    Them ones when your ex changes their profile pic back to one with you in it and you're just like #what
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    (Original post by Jammy Duel)
    Perhaps the most interesting question yet

    Britain's decision to vote to leave the European Union was the...
    Right decision: 46%
    Wrong decision: 42%
    (via YouGov)

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    So 12% don't know (or are Liberal Democrats!)?
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    (Original post by barnetlad)
    So 12% don't know (or are Liberal Democrats!)?
    Pretty standard, I also expect a lot are "wait and see what happens

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    Watching highlights from the Labour leadership debate tonight.
    Smith certainly is a step up from Corbyn but he's not the most convincing.
    I'm unsure whether his very left wing manifesto is an attempt to woo the base or if he genuinely believes it. Under Corbyn I can see the party collapsing, I don't think Labour will win an election under Smith (or even get that close) but I do think he has more of a chance of stopping the party from totally collapsing.
 
 
 
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