Thursday, Jan 15, 2009
There's a limit is there?
BBC News: Will European rate cuts halt the downturn?
There wasn't supposed to be a cut in Eurozone interest rates this January.
Jean Claude Trichet, president of the European Central Bank (ECB) had said there was "a limit" to how low rates could go after three successive cuts saw the main lending facility at 2.5%.
But that was all the way back in December.
It is a sign of just how bad the economic situation is that the rate has now fallen to just 2%.
Should have been as transparent as the UK! (Not saying it's more open here,just that they are worse) Two wrongs...............
Posted by plato @ 04:36 PM (822 views) Add Comment
8 Comments
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1. plato said...
Excuse the extra here but can't resist:-
But that was all the way back in December. (All of a few days. Wow!)
It is a sign of just how bad the economic situation is that the rate has now fallen to just 2%.
No it's not, it's a sign of a liar or a schizophrenic......... Let's not make excuses!
2. flintster1994 said...
NO!
3. troy said...
No it's not, it's a sign of a liar or a schizophrenic......... Let's not make excuses!
No it's not it's a sign of a psychopath ~~~~~~ let's not hold back the truth!!
Will European rate cuts halt the downturn? stupid question ~~~ NO
they just don't get it do they?
4. alan said...
The next countries to consider IRs are New Zealand and Oz. I guess they will go down too!
Having read lots of articles about IRs over the past year, I wonder how low things could go?
Anybody prepared to stick their neck out and forecast where UK rates will stop? I reckon its down again next month. I know its "pushing on a string" - but how long till they find out?
5. troy said...
interest rates are only of interest if we have a debt based economy
if we didn't have a debt based economy the question wouldn't arise
the world would not stop turning
6. enuii said...
What difference do interest rates make when they are as low as this 1%, 1.5%, 2%, 3%. The only difference it makes are to highly leverage businesses like Branson's at the expense of savers and sensibly run less ambitious companies who will bear the brunt due to the lower purchasing power of the government and corporate fleeced populace.
7. inbreda said...
4. alan said...
I know its "pushing on a string" - but how long till they find out?
They will realise when a significant proportion of savings are removed from the system and stuffed under the mattress. Then they will realise that they are defeating the object. Lowering IRs is just showing how worthless the currency is, leading to a bunker mentality, not encouraging lending again.
8. Crunchy said...
2. flintster1994 said...NO
crunchysaid.......... YES