Posted on 02/05/2009 9:14:07 PM PST by rmarley
The Bank of England yesterday cut interest rates to 1%, the lowest level in its 315-year history, as it sought to head off the worst economic crisis since the Great Depression.
The monetary policy committee made a statement accompanying the half percentage point reduction, saying its actions, combined with the government's tax cuts and the weaker pound, should provide a "considerable stimulus" to the UK economy.
(Excerpt) Read more at guardian.co.uk ...
borrow a lot of money and start a kibbutz-like survival farm
Crap, I should take out a 1% loan to pay off my 5% mortgage.
I was shooting at 2 years, but a 1% loan means I could be done in 10 months or so...
if 1% loans can’t spur borrowing they really are DOOMED!
This IS a good time to borrow, if you have the cash flow to fund it: invest in something which will spike in price shortly before, or during the rise of, mega-inflation.
NO cheers, unfortunately.
No the banks will just hoard more money for them selves while raising loan fees. The borrowers will see very little if any improvement at all.
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