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can anyone tell me why lower consumer spending will lead to a cut in rates

What are the factors that are taken into consideration?

it wont happen today but next month they will bring it down a notch. not good for savers, not good for the housing market but good for the governement. apart from the fact that people will still be depending on their house as a pension. it will be intersting in 40 years to see what happens. by that time, Blair and Brown will either not be in power so wont care (well, they may do a little).

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Because our economy is built on debt and many people are up to their necks in it. They'd rather see the whole housing and debt bubbles continue than collapse. Policy seems to always favour these people over those who are responsible with money.

Edited by simon99
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Because our economy is built on debt and many people are up to their necks in it. They'd rather see the whole housing and debt bubbles continue than collapse. Policy seems to always favour these people over those who are responsible with money.

Investment by people willing to risk it all creates jobs for thos unwilling to stick their necks out.

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So that the money we would have spent on interest payments (the bit reduced, that is) is now spent on consumer goods instead, thereby increasing the consumer spend.

Problem is, tax rises this year will more than wipe out any reduction they make. If they don't reduce, home owners will have a further drop in income. What's the betting on the new inflation target being 10% before long :lol:

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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