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Interest rate cut by BOE

Community Veteran
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Registered: 24-09-2008

Interest rate cut by BOE

Think Mark Carney has this one wrong, A cut of VAT by 2.5% would be a better stimulus.

 

21 REPLIES
SpendLessTime
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Re: Interest rate cut by BOE

BOE do not set VAT rates. That would be the Government aka Mrs May PM

Community Veteran
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Registered: 12-08-2007

Re: Interest rate cut by BOE

Carney is Governor of the BofE and is responsible for interest rates. VAT is the responsibility of the Chancellor and he has already indicated that he is considering the VAT rate in his Autumn Statement.

 

There is no reason why we can't have both an adjustment in the interest rate and a reduction in VAT. Today's announcement has little to do with consumer spending but more to do with Stirling's competitive position against other currencies. It will, however, have a possible benefit to mortgages.

 

 

Community Veteran
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Re: Interest rate cut by BOE

It smacks of nothing more than an ill thought out panic adjustment.

The BOFE always made a point with their own set aims and laid down criteria for adjustment, but never seem to work to this.

They make it up as they go along and not very well.

Community Veteran
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Re: Interest rate cut by BOE

I always knew having a North American (and I know he's a Canuck, but Canada's part of north america!) in charge of the bank of England, was a bad idea... Crazy

Community Veteran
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Re: Interest rate cut by BOE

If Hinckley goes ahead it may be China that is in charge of the Bank of England.

Wink

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Re: Interest rate cut by BOE


twocvbloke wrote:

I always knew having a North American (and I know he's a Canuck, but Canada's part of north america!) in charge of the bank of England, was a bad idea... Crazy


 

And what would your idea have been?

 

Community Veteran
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Re: Interest rate cut by BOE


gleneagles wrote:

If Hinckley goes ahead it may be China that is in charge of the Bank of England.

Wink


 

With interest rates being so low at present our government really should consider the financing of the deal. They would be able to borrow at near zero I guess. What was the original deal do you know?

 

Community Veteran
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Re: Interest rate cut by BOE

@artmo:- agree with you, at 0.25% the UK should do it's own financing.

I'm aware BOE do not set VAT rates. I think the chancellor has missed an opportunity waiting for the autumn statement.

 

 

Community Veteran
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Re: Interest rate cut by BOE


artmo wrote:

And what would your idea have been?

 


Having someone from the UK who understands the UK economy being in charge of course, I'd have thought it was obvious... Crazy

Community Veteran
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Re: Interest rate cut by BOE


journeys wrote:

@artmo:- agree with you, at 0.25% the UK should do it's own financing.

I'm aware BOE do not set VAT rates. I think the chancellor has missed an opportunity waiting for the autumn statement.

 

 


There is a suggestion the 'autumn' statement could be brought forward if necessary. At this time that is not thought to be the case.

Community Veteran
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Re: Interest rate cut by BOE


twocvbloke wrote:

 


Having someone from the UK who understands the UK economy being in charge of course, I'd have thought it was obvious...


 

Carney was a highly respected world banker and was interviewed alongside other candidates some of whom were from the UK. He was appointed as he was the best candidate in the eyes of the interview panel. So far he appears to be doing a good job.

Community Veteran
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Re: Interest rate cut by BOE

There's a big "buzzword" doing the rounds, "Keep it local", because local knowledge is more useful than "world banker" knowledge... Cheesy

Community Veteran
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Re: Interest rate cut by BOE

There's no point in attempting to save money while they keep the interest rate low. These crazy economists want us to borrow and spend, spend, spend the nation's  wealth on imported goods. This is good for importing retailers but does not generate investment for British manufacturers.

Now Zen, but a +Net residue.
Community Veteran
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Re: Interest rate cut by BOE

Used to be that even the government paid a fair interest rate on their bonds. After all it helped attract the money they needed for spending.

Now they just print out what they need. I can't see how this really benefits anyone in the long run.

Other than a short term gain by a here today gone tomorrow government.