Bank of England

long overdue, but thank you.

 

How much ?

Said the heavily debt laden Hartog.

 

A mere 0.25%

but every penny counts...Halifax already dropped their base rate, other will follow suit today I reck.

 

RE: A mere 0.25%

Come on down you *******.

I watch my banks response with 'interest'

 

Bad news for savers though (cryin)

 

Good news for us captains of industry.

Gerron't stock market.

 

Just cashed in a shed load of HSBC shares @ £9.32, bought at £6.00 ish (dancin)

 

That's the way.

 

They should have raised them

 

ffs why ?

 

1.House prices already way out of control and need reining in.
2.What about my savings?
3.Just going to encourage more debt.

 

The economy has cooled enough. Now we just need a total reversal of Gordon's tax and spend policies and we'll be reight.</p>

 

Economic downturn? Hmmmmmm

Consumer slowdown hits UK growth

The UK's high streets have been weathering some stormy times
The UK economy put in its worst performance in more than a decade as a High Street slowdown put the brakes on growth, official figures show.
Provisional data from the Office for National Statistics (ONS) showed GDP grew just 0.4% between April and June.

As a result year-on-year growth stood at 1.7% - its weakest rate since the first three months of 1993.

The slowdown is likely to raise fears that Chancellor Gordon Brown could miss his target of 3% - 3.5% growth in 2005.

Dour forecasts

Analyst Howard Archer of Global Insight said he expected growth to hit just 1.8% this year.

[The figures]... should reinforce the view that the Bank of England will cut interest rates

James Knightley, ING Financial Markets

Mr Archer warned a weak manufacturing sector, subdued exports and business investment as well as the recent London bombing attacks would all take their toll.

He also warned that despite upbeat retail sales figures on Thursday, weakening confidence over job prospects could also unsettle the economy later this year.

"Despite the surprisingly strong growth in retail sales in June, we remain dubious that consumer spending is going to see sustained marked improvement in the near term at least, given that a weakening labour market is now threatening to add to add to the already significant pressures facing the consumer," he added.

Slowing trends

Adding to the gloom was news that the manufacturing sector moved into recession during the period. Manufacturing output contracted 0.7% in the second quarter - following a 0.9% fall in the previous three months.

Meanwhile service industry growth slowed to 0.6% during the quarter, from 0.7% between January and March.

 

RE: Economic downturn? Hmmmmmm

I've never worked out this "economic downturn" malarky. I get paid, save some, spend some - don't think "better not buy that new TV/fridge/whatever cause the economy might take a turn for the worse", if I want/need something then I buy it.

 

But do you never buy anything on t'tick

Never make a judgement on how secure your income is

Millions are bonus'd / commision paid or self employed. Small movements in economic activity can affect the take home pay and consumer confidence of millions.

Not everyone is in regularly paid secure work.

 

RE: Economic downturn? Hmmmmmm

Yes but lots of people today are mortgaged and credit carded up to the hilt. Interest rates affect their disposable money.

 

Neither do I think

0.25% drop, quick, go out and buy a new car on HP. but what it will do is reinvigorate a static housing market, perhaps allowing first time buyers onto the first rung as lenders offer better deals to tempt new or re mortgaging. anyone trying to sell a house will vouch for this, we've been crying out for a reduction for months...

 

RE: Neither do I think

Those thrusting entrepeneurs avec business loans will also be able to invest in equipment/infrastructure and hence boost the economy.</p>



A tax of 90% on public sector employees earning over £60k p.a would help. 95% on chief executives of pct's.</p>

 

RE: But do you never buy anything on t'tick

Only thing I ever take a loan out for is a car - and didn't do that last time. Never bought normal household goods like a telly, fridge etc on tick. If I can't afford it I can't have it - that's my philosophy.

 

Mine too, but not the philosophy of the nation!

Just think back to the bleating about the cost of credit on season tickets!!!!!