Friday, January 11, 2008

News scoop BoE actually cut rates !!

Borrowers' joy as rates cut for second month in a row

HOMEOWNERS, borrowers and businesses are celebrating today after the Bank of England announced a reduction in interest rates for the second consecutive month. Comments are good too. I'll paste it is a comment before they take it off.

Posted by happyrenterz @ 11:14 AM (2540 views)
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35 thoughts on “News scoop BoE actually cut rates !!

  • Borrowers’ joy as rates cut for second month in a row

    By MICHAEL BLACKLEY
    HOMEOWNERS, borrowers and businesses are celebrating today after the Bank of England announced a reduction in interest rates for the second consecutive month.
    The Bank’s Monetary Policy Committee made the decision to reduce rates by a quarter point to 5.25 per cent after a range of economic indicators and company results suggested consumers needed a boost to get them spending again.

    It is the first time rates have been trimmed on two consecutive months since November 2001.

    And economists believe that this will not be the end of the rate-slashing – with forecasts that rates could go down to 4.5 per cent by the end of the year.

    The latest decision means that the average homeowner stands to save another £15-£16 on their mortgages if lenders pass the rates cut on to their customers. When added on to the savings from last month’s cut it means that the MPC’s most recent decisions could start to make a impact on the spending power of the average consumer, hit recently with spiralling food and energy bills.

    Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce, said: “I do not support the current pessimistic financial outlook so many express over the credit crisis, but they have good reasons for that view. This is the best antidote the MPC could offer, and I hope it heralds a trend for the year ahead of their decisions being deliberately supportive of building much needed confidence in the economy.”

    Many retailers found trade over the festive period difficult as consumers scaled back spending.

    Marks & Spencer soured the mood yesterday by reporting its first quarterly drop in sales in more than two years and chief executive Stuart Rose said things were unlikely to improve until the end of 2008 or early 2009.

    Although today’s decision will provide some hope for retailers, Edinburgh-based HBoS’s group economist, Martin Ellis, does not expect it to radically transform the state of the economy.

    “It will help to stabilise confidence and spending but we still expect consumer spending to be softer and the property market to be weaker throughout 2008,” said Mr Ellis.

    “It is not surprising that the MPC cut rates today – it was only a question of whether it would do it in January or February. We still expect a further cut around May and the possibility of further reductions later
    in the year.”

    Howard Archer, chief economist at Global Insight, said today’s decision comes despite inflation pressures and shows there is “serious concern” within the MPC that growth could slow sharply in the coming months.

    He expects the MPC to be closely monitoring growth, inflation and financial market developments before deciding if another cut is necessary.

    But he added that it will also want to see that recently higher inflation expectations, rising utility bills and high food prices are not feeding through to push up wages.

    “Further evidence of markedly slowing growth and ongoing tight credit conditions would lead to pressure for a further near-term precautionary interest rate cut,” said Mr Archer.

    “We now expect interest rates to be down to 4.5 per cent by the end of the year as extended below-trend growth increasingly dilutes underlying inflationary pressures.”

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  • little professor says:

    LOOOOOL!

    Great find, happyrenterz!

    I like this comment from “Mervyn King”:

    You lying [email protected], we kept rates unchanged! I’m gonna do to you what I did to the Rock – then you’ll be sorry!

    Merv

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  • Reader’s comment
    “I think you were supposed to print the *other* article.”

    MWAU AHA HAHHH AHHAHHAAHHAHA
    MWAU AHA HAHHH AHHAHHAAHHAHA
    MWAU AHA HAHHH AHHAHHAAHHAHA
    MWAU AHA HAHHH AHHAHHAAHHAHA
    MWAU AHA HAHHH AHHAHHAAHHAHA
    MWAU AHA HAHHH AHHAHHAAHHAHA

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  • silly s*ds……

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  • How can Howard Archer have made such a comment? Is this a fabrication? What the heck, this is cheap cheap cheap

    “Howard Archer, chief economist at Global Insight, said today’s decision comes despite inflation pressures and shows there is “serious concern” within the MPC that growth could slow sharply in the coming months”

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  • “It is the first time rates have been trimmed on two consecutive months since November 2001.”

    MWAUGGA GAGGA HAHAH H HAHHAAHAHAHHAHA GGG
    (sorry I am chocking!)

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  • What? the BOE rate is still 5.5 what the hell is this article about?

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  • little professor says:

    So did the journalist make up these quotes?
    “It is not surprising that the MPC cut rates today” – Martin Ellis
    “This is the best antidote the MPC could offer” – Ron Hewitt

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  • This was written for next months paper. The quotes and sources will be the same, but the dates will change.

    Whoever said journalism was the impartial reporting of the truth – Oh yeah probably a journalist.

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  • Sold My Soul To The Never Never Never says:

    Excellent find – now we can see that the journos make it up as they go along! Printed it off to show my hubby tonight in case it disappears. Best laugh I’ve had this year – even better than the one I had at midday yesterday.

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  • Apparently the website have made a ham-fisted attempt to remove any of their own links to this article but if you know the link as we do then you can still get to it.

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  • C'mon Correction says:

    Haa ha ha ha. Just sums up how the media operate.

    They have probably got templates that they change a little and then print; the same old sh!t ! Amazing that they quote people like that – un-believeable.

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  • This is a gem.

    My favourites:

    HBoS’s group economist, Martin Ellis:
    “It is not surprising that the MPC cut rates today”

    Howard Archer, chief economist at Global Insight:
    “today’s decision comes despite inflation pressures”

    Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce:
    “This is the best antidote the MPC could offer”

    This has made my week. Thanks happyrenterz.

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  • Wishful finking…..

    Deez saps must be desparate with der 500k mortgage

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  • da editor must be despaerate coz he got a 500k mortgage and daughter in da private school. looks like little millie will have to give up da equestrian classes and er posh mates and go to da local rough state school

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  • They’re so terribly, awfully, heart-wrenchingly sorry for this lame-brained piece of idiocy, as witnessed by their apology. Problem is, the article wasn’t taken down quite as quickly or as eagerly as they suggest, as I clicked the link ten minutes ago and it was still there…

    “Interest rates apology

    AN article prepared in advance of yesterday’s interest rate announcement appeared in error on the edinburghnews.com site.
    The mistake was spotted shortly afterwards and the article taken down.”

    http://edinburghnews.scotsman.com/business/Interest-rates-apology.3664685.jp

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  • eyeoftheweasel says:

    Maybe the writer of this article has a time-machine that he uses to get the news before it happens. Unfortunately, he didn’t realise he’d been taken to a parallel universe where interest rates had been cut.

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  • Almost as good as the b*llsh*t about Bush wanting Israel to end their occupation of Palestine, when America has been supporting Zionist expansionism for decades.

    Amazing how the media hasn’t even blinked an eye on the U-turn. They’ve just reported it as if WE (us & America) haven’t been causing the problem all along.

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  • An Bearin Bui says:

    How ridiculous does The Scotsman look now? Clearly, they have dispensed with basic journalistic principles and just print whatever made-up piece of claptrap they have lying around the office with no regard for factual accuracy. Interesting also how it reveals the newspaper’s bias towards an interest rate cut and a booming housing market as they haven’t published any article or comment at all on interest rates being kept on hold. Zero analysis or commet given when the decision doesn’t suit the vested interests who keep them in advertising revenue clearly.

    Pathetic.

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  • Re: Howard Archer @confused76

    These people probably give a couple of statements dependent on the outcome.

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  • Great now I don’t believe _anything_ I read.

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  • Shame – it’s gone now – just as I was about to send the link the the Beeb. I do hope someone else managed to get this reported somewhere.

    Does anyone know if they have replaced it with ‘Savers joy as rates stay on hold’ or ‘FTB’s joy as house prices look like falling further’??

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  • Surely there has been a law broken here, the quotes are fabricated. Who do I write to ?

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  • We should have a Gaff of the year award; I’ll happily nominate this one. Lets see if it’s bettered this year. Fools

    I would never trust The Scotsman anyway they generally only print positive spin for the ESPC “Edinburgh Solicitor property Center”

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  • Man, this needs to be embarrasing for them! What about all the quotes?

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  • Lets try to find an English , Welsh and Irish version to vy for the Gaff of the year. We can then have a “heard the one about the Scotish, English Welsh and Irish journalists”, if only there was an Englishman, Irishman and Welshman paper, the joke would just “read” better ;-).

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  • What’s with all the removed comments??? I always miss the best bits!

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  • crash bandicoot says:

    techieman, you could try “There was a mortgage bank, a property developer and a BTL investor” but it doesn’t have the same ring. And the punchline would still be the same as in the Scotsman i.e. houses only ever go up in price – particularly in Scotland – especially the ones that are owned by me, and my friends too.

    As I wrote the other day the time for 0.25% cuts to come to the rescue is long gone. We did not enter a new paradigm of perpetually low interest rates, we did not do a particularly bright thing calling remortgaging “equity withdrawl” we did not pass go and collect £200. We now have to sit back and watch the results of collective hysteria.

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  • bidin’matime – The Beeb probably doesn’t have the sense of humour for it anyway – Private Eye does however with their ‘Street of Shame’ section and have been filled in with the fun.

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  • Anybody notify the mainstream press about this one?

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  • i think the paper should be prosecuted for misleading the public and making up stories…..

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  • Still-waiting says:

    This is pretty normal journalistic practice I think. I wouldn’t get too excited about it. The BBC have a big file of obituaries for people who are still alive, so that they’re ready when they finally kark it. This is the same thing really, the guy was probably doing his work in advance so he could go to the pub. Only this time the BOE decision wasn’t the one he expected but the report got accidentally filed. I suspect the Daily Express has the following templates and little else: a) House prices are going to fall b) House prices are going to rise c) Diana was murdered. They just flip a coin about which one to use each day.

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  • little professor says:

    Don’t forget the Madelaine stories…

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  • Dohousescrashinthewoods says:

    Eh, shucks, it’s gone for good.

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  • it_is_going_with_a_bang says:

    LOL Just shows how they ALL operate – Not just the Scotsman. They routinely have 2 different stories ready. Quotes are just ‘half truths’ over the phone.
    All bundled together to make an up to the minute story. Just shows how their ‘sentiment’ is absolute 8ollocks.
    Just shows that none of the quotes are reactions – just VI’s with an opinion that the ‘paper’ or ‘journalist’ wants to give a mouth.
    It’s not ‘reporting’ – but rather ‘manipulation’ of the truth.
    Gutter journalismof the worst kind and a clear mis-representation of the truth even if rates had gone down. It would never have been a reaction would it?! So the whole article from start to finish would be a fabrication.
    They should be ashamed but I doubt it.

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