Bank of England raises base rate of interest to 1%
 

Appears our slide into recession is inevitable . Can anyone see a glimpse of a silver lining or any way out 'cause I can't.

https://news.sky.com/story/interest-...-high-12605700

https://www.moneysavingexpert.com/ne...bGD_Pq8wV5iwh0

Re: Bank of England raises base rate of interest to 1%
 

In the short-term, we need to hope for a quick end to the war in Ukraine and for Coronavirus not to impact us economically in the future.

Longer term, the UK is continuing to suffer from poor productivity and reduced trade with its largest trading partner, the EU. Tackling these may not prevent the short-term slide but will help the country's economy in the longer term.

Re: Bank of England raises base rate of interest to 1%
 

Re: Bank of England raises base rate of interest to 1%
 

MY view too. We don't have a mortgage and do have some savings but we are on a fixed income which at the moment are keeping our heads above water but I am so worried about those who are struggling already.

Not sure how to interpret your post. Are you agreeing with Andrew's post or are you insinuating that Boris is happy his plan is coming together. Either way I fear you have covered both alternatives. :D :D :D

Re: Bank of England raises base rate of interest to 1%
 

I locked in a 5 year fixed back in December thankfully.

Re: Bank of England raises base rate of interest to 1%
 

Likewise … we reserved a 5-year fix for our house move, which won’t begin until the move occurs in a couple of months time, so thankfully we’ve managed to stay ahead of it a little bit. Just hoping that 5 years from now things have settled down a bit because otherwise we’ll be in for a bit of a shock.

Re: Bank of England raises base rate of interest to 1%
 

How much will it go before savers get some benefit?

Re: Bank of England raises base rate of interest to 1%
 

Probably around "never"…

Re: Bank of England raises base rate of interest to 1%
 

both :)

Re: Bank of England raises base rate of interest to 1%
 

Partly because of people on fixed rate deals.

The return for savers depends on the money being earned on loans. If the income doesn't go up that much, it can't be given to savers.

Re: Bank of England raises base rate of interest to 1%
 

To be of actual benefit, the savings rate need to be higher than inflation.
Being close would at least be useful, but atm, savings rates are way way below.

Saving atm is pretty much just a waste of time.
I stopped putting any money into savings at the start of the year.

I may as well just spend it, and enjoy the benefits.
Not to mention everthing is going up at alarming rates atm, so I have little (if anything) left to save.

Re: Bank of England raises base rate of interest to 1%
 

I put savings into either an investment ISA account or my SIPP (pension). The regular accounts just don't work.

Re: Bank of England raises base rate of interest to 1%
 

It's good to save even if just for those things that can go wrong (all at the same time), solar inverter, washing machine, boiler. Also to build that buffer for price increases.

Re: Bank of England raises base rate of interest to 1%
 

As the interest rates have been so low we put some into Premium bonds and so far in the last 18 months we have have won at least three times the amount we would have earned in our savings account.

I know premium bonds aren't normally the best choice but at least our money is easily accessed and I know we'll be able use it if we need it or to invest whenever /if ever a better short term investment opportunity appears.

Just grateful that what money we do have invested was put into bonds for five years on a fixed rate of over 2% and it's still got a couple of years to go.

Re: Bank of England raises base rate of interest to 1%
 

So true:erm:

Re: Bank of England raises base rate of interest to 1%
 

Rates are now 1.25%. The question long term is how many more interest rate rises there will be and at what level rates will get to in the current cycle of rate rises.

Re: Bank of England raises base rate of interest to 1%
 

My Capital One card cut my rate by 9% I was shocked hahaha

Re: Bank of England raises base rate of interest to 1%
 

We are regularly overpaying our mortgage which has a 1.34% fixed rate. It's getting to the point where, for us, it is better to put the money in a savings account and pay a big wedge at the end. I see 4 year accounts paying nearly 3% now.

Re: Bank of England raises base rate of interest to 1%
 

Increase them 10% as far as I'm concerned. Savers have suffered too long , and house prices are absurdly high thanks to cheap lending.

Re: Bank of England raises base rate of interest to 1%
 

But that also hits business that borrow -> raised prices. And all those who have borrowed. I agree that as a saver I like to see better rates but I do also think of those who aren't.

Re: Bank of England raises base rate of interest to 1%
 

Indeed, but savings rates have not been increased by very much with easy access accounts still seemingly only paying a maximum of 0.25%.