Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

How low can interest rates go?
BBC ^ | 25 March 2015 | Robert Peston

Posted on 03/26/2015 7:40:52 PM PDT by Lorianne

The Bank of England's website says that the "effective lower bound" for the interest rate it sets, Bank Rate, is the current rate of 0.5%.

This is the level, according to the Bank, "below which it cannot be set" - the lowest practicable official interest rate.

But on this important issue the website is behind the thinking of the Bank of England's Monetary Policy Committee, which sets Bank Rate as its main tool to keep inflation on target.

The Bank of England's website says that the "effective lower bound" for the interest rate it sets, Bank Rate, is the current rate of 0.5%.

This is the level, according to the Bank, "below which it cannot be set" - the lowest practicable official interest rate.

But on this important issue the website is behind the thinking of the Bank of England's Monetary Policy Committee, which sets Bank Rate as its main tool to keep inflation on target.

(Excerpt) Read more at bbc.com ...


TOPICS: Business/Economy
KEYWORDS: federalreserve; interestrate

1 posted on 03/26/2015 7:40:52 PM PDT by Lorianne
[ Post Reply | Private Reply | View Replies]

To: Lorianne

Low interest rates are causing the problem. They’re resulting in two distinct actions:

1. They’re not letting RE prices settle to a free market rate.

2. They’re causing a misallocation of capital.

Toss in the socialistic regimes regulatory burden and you’re not going to get much growth. 2016 can’t come fast enough. Get the Fed out of the banking business.

It’s a group of bankers working for... wait for it... bankers. They’ve failed over and over again since their inception.


2 posted on 03/26/2015 7:47:39 PM PDT by 1010RD (First, Do No Harm)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 1010RD

The German 1 year bond currently pays -0.21%

In other words, you have to pay them to hold your Euros.


3 posted on 03/26/2015 7:53:08 PM PDT by alpo
[ Post Reply | Private Reply | To 2 | View Replies]

To: Lorianne

Bring saving interst rates up to 4% and let the chips fall where they may.


4 posted on 03/26/2015 8:10:11 PM PDT by Nuc 1.1 (Nuc 1 Liberals aren't Patriots. Remember 1789!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

You Have Already Been Robbed, So What Are You Going To Do About It?
http://seekingalpha.com/instablog/29482055-gregory-mannarino/3858416-you-have-already-been-robbed-so-what-are-you-going-to-do-about-it

Fed policies have cost savers $470 billion: Report
http://www.cnbc.com/id/102537689
The Federal Reserve’s efforts to stimulate the U.S. economy after the financial crisis ended up costing savers nearly half a trillion dollars in interest income, according to report released Thursday.


5 posted on 03/26/2015 8:39:11 PM PDT by Whenifhow
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson