Mortgage rates have disconnected from the base rate, so this means little or nothing (IMO).
here is the sign of the times.
"No fresh aid for economy from rate-setters" - so 0.5% IRs for a whole year is apparently considered a neutral stance!
This is only one month's falls and from one source. I personally wouldn't read into it too much.
Meanwhile house prices also registered their first fall in nearly a year during February, according to house price surveys from Halifax and Nationwide.
Translation: **** sterling, we are going to print more. We just need an excuse.
Members of the MPC have also dropped hints that more QE could be in the offing if the recovery fails to gain traction and the threat of a dreaded "double-dip" recession looms.
Pension funds are required (by law) to buy British government gilts so that's one major buyer ID'ed already. As for the others, I suspect that central bank exchanges are happening. After all, the main reason for buying government gilts is the security. But what security do UK gilts offer? A guaranteed loss?
it is not like they pull any surprises. they have said all along what they would do, and they have done so. what surprises me is that people (all over the world, apparently) seem not to believe it and continue to accumulate bonds and checking deposits bearing these ridiculous massively negative real interest rates!