Now that's a cut

Dave Clemo

Nothing to do with needing some good news on the eve of the Glenrothes by-election then?

Travis Bickle

Will probably do little to nothing for borrowers but is a complete disaster for savers.

Pensions, savings, property = why bother?

Ken from Glos

As usual those who live within their means and save are being stuffed.

richardj

It just shows how hopeless the Government and the Bank have been since last summer.

Ivy Eileen

If they truly believe this amount is necessary, what world has the MPC been living in for the last few months ?
....... and yes, of course, it has nothing to do with Darling confirming last week the B of E was "independent" and Brown saying much the same yesterday in PMQ's - scarcely veiled hints, digs and prods.

John Miller

Now I really have become a cynic.

MPC 0.5%
Glenrothes 1%
Total rate cut 1.5%

Ruairidh

Well I for one am happy.

I'm on a mortgage tracking the BOE rate plus half. This news just knocked 30% of my mortgage interest bill.

David Lindsay

These things should be decided within the democratic political process, or there is no point having a democratic political process, such as has been proved vastly preferable to rule by bankers as "the Masters of the Universe.

The Cabinet, accountable to Parliament, should be the "Monetary Policy Committee", just as the Cabinet, accountable to Parliament, should be the Board of Directors of any bank either owned by or dependent on the taxpayer. There would be failure to pass on interest rates cuts then. Would there?

We are the Masters now.

Or, at least, we should be.

C Powell

Yes: savers totally ignored: by the Government, the BoE, the Opposition, commentators. And yet, savers outnumber mortgage holders by 6 to 1 and we have votes too. Time to take your money out of the UK, I think. Inflation will be up, as the Government prints money to pay for all the debts it's stuffed us with.

Never mind Osborne's one-liner. What about some policy to make savings free of tax e.g. for the first £50,000 to show that he does understand the pain being suffered now by those who - unlike the Government and those individuals who lived beyond their means - really were being prudent?

George/Dave: are you listening?

Wily Trout

I see the IMF has revised its forecasts downwards for next year. Worst hit will be the UK, shrinking 1.3%, followed by Germany at 0.8% and the US and Spain contracting by 0.7%.

Damien Vaugh

So let's recap, the BOE slashes rates to kick start the economy and help business..and Mayor Johnson slashes £3 billion from investment in infrastructure. Surely Bojo could have gone to the Government and asked for additional funding at this critical time?. If the banks are getting billions in assistance then surely 'main street' is worthy of some extra help?. He's not thinking of Joe-the-plumber then !!

I can see clear blue water now !!!

cuffleyburgers

Lucky me I have been living beyond my (modest) means for the last year or so and have next to no sterling left.

Time to start earning some Euros perhaps?

Also lucky me I don't live in England any more.

Italy may be pants as well, but it's pants in a rather charming, traditional way rather than the authoritarian populist jobsworth chav living hell that Labour are creating.

TGF UKIP

I note that notwithstanding this (or because of the panic it betrays?) the market has dropped by over 250.

Just whose bright ideas was it to put such nationally vital economic decisions in the hands of a bunch of economists?

If only Corporal Jones was on the MPC he might stop them overdoing daft things like this.

NG

Fascinating how a big cut in interest rates panics the city.

Alledgedly this is because it
confirms what everyone else in the country already knows:-

THINGS AIN'T LOOKING PEACHY ANYMORE.

Surely the whole point of these analysts and consultants in the city is that they evaluate the market and economic conditions before they actually happen and act accordingly.

Once again they seem to have failed to grasp what is actually happening, something that has been painfully obvious to anyone living outside of the financial centre of the world.

Ian C

What is needed fror the next year is a steep yield curve with low short term rates and high long term. This would give both the mortgage and saving markets what is needed while allowing banks a profit on short term borrowings. Once capital is restored and economic activity on the way back the curve than be flattened again. Not rocket science.
Are they really economists on the MPC?

Gareth Lewis

C Powell - don't be so ridiculous. You need to look at the bigger picture before complaining about your savings rates. Action was needed to get banks to lend to each other and thankfully that is what happened. I think you should take your money out of Britain as a personal protest, and then we'll all watch you lose every penny due to your greed to follow higher rates in less stable economies. Good Luck!