Interest Rate Increase

[#1]

The Bank of England has increased interest rates to 0.75%

Rise in Interest Rates

It is the first rise in a decade and not unexpected.

[#2]

Still far too low for me.

5% is more reasonable. A fair return for savers and still a low rate for borrowers.

The current low rate seems more about keeping the governments borrowing under control.

[#3]

But if savers got 5% the borrowing rate would have to be around 6%+.  This is not sustainable currently. 

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[#4]

If you have "that much" money, that you are concerned about having 5% interest on it, then perhaps you would be better off going into the "property refurb" market.... where people often get more than 5% up to 10%+. making £10k+  from developing/refurbishing property over 6 to 8 weeks work...  Bearing in mind, these guys are paying others to do the work for them in most cases ! ! ! ..

Wish I had that kind of money... but too late in life , unless I win the lottery...  !

[#5]

No I haven't that much, wish I had. I would just like a fair return for bankrolling every man and his dog.

It just seems at the moment everyone gets a good deal except the savers who are supplying the money.

[#6]

Correct me if I'm wrong, but broadly speaking if the Interest Rate goes up, the Government will will have to pay more to service the Government Debt pile?

[#7]

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@artmo wrote:

Rise in Interest Rates

It is the first rise in a decade and not unexpected.

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As the graph at the end of the BBC article shows, the BoE interest rate rose a year or two ago (from 0.25 to 0.5%), but it's the first time in nearly a decade that it has gone above 0.5%.

As long as inflation is higher than savings interest, our savings are losing value, yet the government complain that we are not saving as much as other nations.

[#8]

The graph should go back to the early 90’s when the rate was almost 15%.

If you had a mortgage there was not much chance of saving anything......

[#9]

I remember getting 15% interest on a bog-standard building society savings account. 

[#10]

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@Champnet wrote:

early 90’s when the rate was almost 15%.

If you had a mortgage there was not much chance of saving anything......

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I had a mortgage then. Funny thing though with the equally high interest on savings, even the small amount I had, the interest on that used to cover a good part of my mortgage.

The rates have swung over so far now that they benefit no one except the banks and the government.