UK GDP shows 0.7% contraction in 2012 Q2
Scooby Regular
iTrader: (2)
Joined: Apr 2004
Posts: 15,029
Likes: 0
From: Somewhere in Kent, sniffing some V-Power
No this scheme is not like quantitative easing, it can't be used to shore up banks' balance sheets in the same way, that's why they've done it differently. HSBC have already said they won't be participating so there's no guarantee of success, but it is at least something, you can't accuse the Bank of not trying.
Regarding Libor, roughly speaking you got a lower fix on your mortgage because rates were reflected too low. So you probably owe hundreds if not thousands if you had a sizeable mortgage. Or is that a bit inconvenient?
Regarding Libor, roughly speaking you got a lower fix on your mortgage because rates were reflected too low. So you probably owe hundreds if not thousands if you had a sizeable mortgage. Or is that a bit inconvenient?
Surely, if the banks are saying that their inta-lending rate is higher (legally or not), officially, they will have to pass this on the their customers in the form of higher sv interest rates.
If not, then why have so many banks raised their rates?
Scooby Regular
Joined: Aug 2000
Posts: 80,907
Likes: 0
From: God's promised land
Sorry don't follow 
Libor rates were (and still are) artificially low. The real cost of money is a lot higher. Hence why banks are raising their cost of borrowing, as you mention.
Is the question about savings rates? If it is, then they would argue that those are more closely linked to the official base rate, and they'd be right.
Put it this way, with a non-functioning banking system you can almost justify any price, and the spread between borrowing and lending will be higher than ever.
Libor rates were (and still are) artificially low. The real cost of money is a lot higher. Hence why banks are raising their cost of borrowing, as you mention.
Is the question about savings rates? If it is, then they would argue that those are more closely linked to the official base rate, and they'd be right.
Put it this way, with a non-functioning banking system you can almost justify any price, and the spread between borrowing and lending will be higher than ever.
Scooby Regular
Joined: Aug 2002
Posts: 39,877
Likes: 0
Scooby Regular
Joined: Jan 2007
Posts: 1,077
Likes: 0
From: The Potteries
The Office of Budget Responsibility might as well throw these predictions in the bin, they predicted a 0.8% rise in the economy this year. 
http://budgetresponsibility.independ...ok-march-2012/
http://budgetresponsibility.independ...ok-march-2012/
Thread
Thread Starter
Forum
Replies
Last Post
Phil3822
General Technical
0
Sep 30, 2015 06:29 PM
