Post Brexit: the reality

[Golden Princess]

If there was a plan everyone could pull in the same direction

At the moment there are more concerns than just global markets.

[towny44]

If there was a plan everyone could pull in the same direction

At the moment there are more concerns than just global markets.

It depends on which paper and which TV channel you watch, and more importantly how vociferous are the various forecasting groups in advertising their latest pipe dreams forecasts.

[Gill W]

BoE rate reduces to 0.25%.
First change since 2009.
To do with Brexit or not.
There's one for you to discuss

[oldbluefox]

BoE rate reduces to 0.25%.
First change since 2009.
To do with Brexit or not.
There's one for you to discuss

What is your opinion?

[david63]

What is your opinion?

My opinion is that I would not trust Mark Carney as far as I could throw him. It is time he went and we had a British BOE Governor - he has been a total disaster. His latest comment:

Governor Mark Carney said there was scope to cut the interest rate further.

At this rate [pun] it will not be long before we have to pay the banks to look after out money.

What happened to the "When unemployment falls below x% interest rates will rise"? Unemployment fell and what did interest rates do? Now let me think - what is the opposite of rise?

[towny44]

BoE rate reduces to 0.25%.
First change since 2009.
To do with Brexit or not.
There's one for you to discuss

What is your opinion?

The decision seems to have been based on one weeks data following the referendum, when most financial analysts were in total shock and meltdown at the result and probably pissed as newts as well.
So my analysis is lets wait and see just what happens over the rest of the year, and even then we will probably need to wait further while the negotiations start in earnest. But then what do I know I'm not paid a fortune to run the B of E, and even more on the after dinner circuit once I'm sacked or resign.

[Gill W]

BoE rate reduces to 0.25%.
First change since 2009.
To do with Brexit or not.
There's one for you to discuss

What is your opinion?

Considering the interest rate has been stable since 2009, my opinion is that it is Brexit related.

[Dark Knight]

At some point Brexit will stop being the catch all for any failed remainers wrath and they may even realise that the everyone needs to work together to succeed, once people stop blaming the last 50 years worth of problems on Brexit, the sooner we can all move forward

[Silver_Shiney]

Part of an article published just now by Hargreaves Lansdown:

At the turn of the year, my suggestion that the next move in interest rates could be down was met with howls of derision. Yet we have repeatedly suggested throughout the past seven years that rates would stay lower for longer than most expect.

You can’t blame savers for believing that some kind of normalisation would occur. In 2009, 0.5% was described as an ‘emergency’ rate, and Mark Carney has been suggesting a rate rise is around the corner ever since he took the reins in 2013.

hy a rate cut won’t help the economy

I don’t believe an interest rate cut will help the economy. Savers have already accepted they are earning next to nothing on their cash, and a quarter of a percentage point less interest isn’t going to persuade them to suddenly go out and spend their savings. In fact, and somewhat perversely, if you are relying on savings interest, lower rates mean you need to save more – exactly the opposite of what the Bank of England wants you to do!

No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

Likewise the cost of borrowing is already low – slightly lower rates aren’t going to persuade businesses to ignore all the uncertainty and borrow to invest.

Ultra-low rates are here to stay

The main message to take from the interest rate cut is that ultra-low rates are here to stay for the long term. It seems likely that rates are not going to rise for at least the rest of this decade, and possibly longer. I would also be surprised if they rose in the United States this year.

All in all investors are going to have to get used to earning very little on their cash for much longer than they ever thought. A consequence of this is that investors in search of a return on their capital are being forced into riskier assets. Money is like water – it always flows somewhere. In my view its destination for the foreseeable future will be the stock market – and in particular equity income.

The gap between the yield available on an equity income fund and the interest available on cash is the biggest I can remember

Interest rates should have gone up, in my opinion.

[Mervyn and Trish]

BoE rate reduces to 0.25%.
First change since 2009.
To do with Brexit or not.
There's one for you to discuss

What is your opinion?

Considering the interest rate has been stable since 2009, my opinion is that it is Brexit related.

I agree this latest change is related to business confidence and is therefore Brexit related.

And yes it has been stable since 2009.

However from 1999 to 2008 it was between 4% and 5% and then plummeted to 0.5% in 2009. And we were firmly in the EU then. And between 2009 and today we were also in the EU and it was stable at a ludicrously low rate.

So while this is almost certainly Brexit related, in the wider scheme of things it's neither here nor there.

And just to note that during the Brexit debate Mark Carnage warned us interest rates would rise if we voted out. He really should be on his way home. Utterly useless.

[Ray Scully]

Be careful what you wish for. http://www.bbc.co.uk/news/business-36976528

Congratulations my fellow Seniors who voted out.
As you wished, your annuities will be taking a dive,
overseas holidays will be at least 10% more expensive.
The job losses will hopefully not effect your families.
Interest on your savings will soon not be worth collecting
Buy a new bed. one with the draws below the mattress
you will need it if the banks start charging for deposits

[Gill W]

Be careful what you wish for. http://www.bbc.co.uk/news/business-36976528

Congratulations my fellow Seniors who voted out.
As you wished, your annuities will be taking a dive,
overseas holidays will be at least 10% more expensive.
The job losses will hopefully not effect your families.
Interest on your savings will soon not be worth collecting
Buy a new bed. one with the draws below the mattress
you will need it if the banks start charging for deposits

*waiting for the posts to say none of this will happen, scaremongering, nothing to do with Brexit, etc, etc *

None of knows what's going to happen, but none of us can be complacement either.

Prepare for the worst, and hope for the best

[towny44]

Be careful what you wish for. http://www.bbc.co.uk/news/business-36976528

Congratulations my fellow Seniors who voted out.
As you wished, your annuities will be taking a dive,
overseas holidays will be at least 10% more expensive.
The job losses will hopefully not effect your families.
Interest on your savings will soon not be worth collecting
Buy a new bed. one with the draws below the mattress
you will need it if the banks start charging for deposits

*waiting for the posts to say none of this will happen, scaremongering, nothing to do with Brexit, etc, etc *

None of knows what's going to happen, but none of us can be complacement either.

Prepare for the worst, and hope for the best

Gill, My comments would be,
Annuities,- yes they are continuing their downward spiral of the last 15 years.
Overseas holidays - probably will rise but not by the full effect of devaluation, air fares and TA costs are all in sterling.
Interest on savings - yes been on a downhill track since 2007.

I don't advocate complacency but if we all continue to do what we did before, its unlikely the economy will decline and it should continue to grow.
So altogether now "Always look on the bright side of life............."

[Golden Princess]

We meet several Canadians on a Princess cruise last year. They were all of the same opinion. Mark Carney is excellent, they did not want him to come to Britain, they wanted him to stay. Other comments were along the lines of, he is his own man and will not be unduly swayed by politicians, he will put his heart and soul into doing the best possible for the best possible outcome. From what we were told the Canadians would welcome him back with open arms and he would be a great loss to Britain.

[oldbluefox]

I can't in all honesty say I have been impressed with him at all. Too many predictions have been wrong and too many promises broken for me to have any faith in him. Clearly the Canadians saw something in him which I don't see.

[Golden Princess]

Guess it just depends on the circumstances at the time. I see no wrong in anyone changing course due to the prevailing conditions. Did he ever promise anything? And as for predictions being wrong ............

I have no idea myself if he is good or not so good. If I did, I would be the Governor of the Bank of England (or Canada).

[Mervyn and Trish]

He said interest rates would go when unemployment fell below 7%

He said interest rates would go up if we voted for Brexit.

How many more examples do you want?

[Golden Princess]

And other factors intervened perhaps ?

I wouldn't know, I am not an economist. That is why we have experts, that we second guess and ignore.

[Ray Scully]

And other factors intervened perhaps ?

I wouldn't know, I am not an economist. That is why we have experts, that we second guess and ignore.

[Mervyn and Trish]

There were about two weeks between the second promise/warning and us voting the way he was talking about so what changed? Nothing except his mind

[Ray Scully]

Some conversations on this topic are reminiscent of Nero fiddling whilst Rome was burning
Wake up and smell the coffee folks
We are all in the es hache one tee

[Golden Princess]

An awful lot can happen in an hour, day, week - just remember what happened on what seemed liked nearly every day in say end of June/beginning of July.

[oldbluefox]

Some conversations on this topic are reminiscent of Nero fiddling whilst Rome was burning
Wake up and smell the coffee folks
We are all in the es hache one tee

So saith the founder of Pessimists R Us.

[Ray Scully]

Some conversations on this topic are reminiscent of Nero fiddling whilst Rome was burning
Wake up and smell the coffee folks
We are all in the es hache one tee

So saith the founder of Pessimists R Us.

"He who laughs last" he who laughs last"

Unfortunately for many it appears that its not going to be a laughing matter

[oldbluefox]

Truth of the matter is that for most there was no benefit to be accrued from our membership of the EU. Wealth and development focused on certain parts of the country whilst others were left to deteriorate. I accept that those who benefited will mourn the decision to leave the EU but for many it represented a kick up the backside that all is not well in UK and the nation's wealth has not been shared equitably. The situation was exacerbated by uncontrolled immigration and the pressures this placed on public services in areas which were already struggling.
"Let them eat cake?"