Anna B 1,414 #1 Posted January 22, 2021 12 years after the banking crisis, why are bank and building society accounts still paying so little interest? 0.05% is common, and it rarely rises above 1.5% This affects other things like pension rates etc too. When the rich are getting substantially richer just wondering if any of the economists on here can fill us in? Share this post Link to post Share on other sites Share this content via...
Baron99 794 #2 Posted January 22, 2021 (edited) Here you go. Comprehensive answer. https://www.bbc.co.uk/news/amp/business-54314971 https://www.bankofengland.co.uk/knowledgebank/what-are-interest-rates Basically every country is settling low rates due to the pandemic affecting economies at the moment. Have a read of the links. Edited January 22, 2021 by Baron99 Share this post Link to post Share on other sites Share this content via...
Anna B 1,414 #3 Posted January 22, 2021 7 minutes ago, Baron99 said: Here you go. Comprehensive answer. https://www.bbc.co.uk/news/amp/business-54314971 https://www.bankofengland.co.uk/knowledgebank/what-are-interest-rates Basically every country is settling low rates due to the pandemic at the moment. Have a read of the links. I will, thankyou. But pandemic has only been going for 12 months, interest rates have been low for 12 years. Share this post Link to post Share on other sites Share this content via...
Baron99 794 #4 Posted January 22, 2021 5 minutes ago, Anna B said: I will, thankyou. But pandemic has only been going for 12 months, interest rates have been low for 12 years. Here you go. https://www.bbc.co.uk/news/amp/business-36976528 Basically, low interest rates hopefully stimulate an economy while high interest rates slow it down. Its all about controlling inflation. Share this post Link to post Share on other sites Share this content via...
Anna B 1,414 #5 Posted January 22, 2021 (edited) 25 minutes ago, Baron99 said: Here you go. https://www.bbc.co.uk/news/amp/business-36976528 Basically, low interest rates hopefully stimulate an economy while high interest rates slow it down. Its all about controlling inflation. Indeed. Have read the links you gave, and the thing that stood out was ' The Bank of England usually lowers interest rates when it wants people to spend more and save less.' A very neoliberal response favouring big business and the markets while depriving the little man. I would also argue that it hasn't controlled inflation as prices continue to rise at a quite alarming rate. Edited January 22, 2021 by Anna B Share this post Link to post Share on other sites Share this content via...
tinfoilhat 11 #6 Posted January 22, 2021 Just now, Anna B said: Indeed. Have read the links you gave, and the thing that stood out was ' The Bank of England usually lowers interest rates when it wants people to spend more and save less.' A very neoliberal response favouring big business and the markets while cutting out the little man. Can you afford a 5% increase on your mortgage rate? Share this post Link to post Share on other sites Share this content via...
Anna B 1,414 #7 Posted January 22, 2021 (edited) 7 minutes ago, tinfoilhat said: Can you afford a 5% increase on your mortgage rate? And still house prices continue to rise. I had to afford a 15% interest rate under Thatcher. Edited January 22, 2021 by Anna B Share this post Link to post Share on other sites Share this content via...
tinfoilhat 11 #8 Posted January 22, 2021 So you'd have easily coped if they'd gone up to 20% then? I remember my folks struggled at 15%. Maybe you weren't that little? Share this post Link to post Share on other sites Share this content via...
ECCOnoob 1,032 #9 Posted January 22, 2021 (edited) 24 minutes ago, Anna B said: Indeed. Have read the links you gave, and the thing that stood out was ' The Bank of England usually lowers interest rates when it wants people to spend more and save less.' A very neoliberal response favouring big business and the markets while depriving the little man. I would also argue that it hasn't controlled inflation as prices continue to rise at a quite alarming rate. Its those big businesses and the market that keep the money flowing round. Its those big businesses that create the jobs. It is people going out and spending money that keep companies operating and staff employed so they have money in their pockets to keep going out and spending. Round and round it goes stimulating the economy. Keeping it flowing. Stopping it from grinding to a halt and then really causing problems. Problems which have been all too obvious to everyone over the past 12-months. If everyone was like Derek and Deirdre in their paid for house, hoarding away their pennies and only popping out once a month for smart price groceries it wouldn't do much to stimulate growth would it. Of course it is very important for all of us to think about out the future, put something away for a rainy day and be encouraged to do some saving for our pensions and old-age but there has to be some balance and part of that is controlling the interest rates. As for the recent trend in upward prices have you thought that perhaps the global pandemic or even before that at the brexit disruption might have anything to do with it? Have you noticed what can happen to consumer prices when supplies become restricted or our ability to have have freedom of choice from a globalised marketplace is heavily penalised, disrupted slowed down or controlled? 16 minutes ago, Anna B said: And still house prices continue to rise. I had to afford a 15% interest rate under Thatcher. ....and of course you just happily accepted it without complaint because, hey, it was good for our savings accounts right? Edited January 22, 2021 by ECCOnoob Share this post Link to post Share on other sites Share this content via...
Anna B 1,414 #10 Posted January 22, 2021 (edited) 13 minutes ago, tinfoilhat said: So you'd have easily coped if they'd gone up to 20% then? I remember my folks struggled at 15%. Maybe you weren't that little? We could barely survive the 15%. We'd just moved into a new house which had already stretched us. With 2 little kids I had to get a job in a local pub where the landlord allowed my kids to come and play with his children while I worked. My wages were all we had for food and bills. Edited January 22, 2021 by Anna B Share this post Link to post Share on other sites Share this content via...
Anna B 1,414 #11 Posted January 22, 2021 (edited) 51 minutes ago, ECCOnoob said: Its those big businesses and the market that keep the money flowing round. Its those big businesses that create the jobs. It is people going out and spending money that keep companies operating and staff employed so they have money in their pockets to keep going out and spending. Round and round it goes stimulating the economy. Keeping it flowing. Stopping it from grinding to a halt and then really causing problems. Problems which have been all too obvious to everyone over the past 12-months. If everyone was like Derek and Deirdre in their paid for house, hoarding away their pennies and only popping out once a month for smart price groceries it wouldn't do much to stimulate growth would it. Of course it is very important for all of us to think about out the future, put something away for a rainy day and be encouraged to do some saving for our pensions and old-age but there has to be some balance and part of that is controlling the interest rates. 51 minutes ago, ECCOnoob said: As for the recent trend in upward prices have you thought that perhaps the global pandemic or even before that at the brexit disruption might have anything to do with it? Have you noticed what can happen to consumer prices when supplies become restricted or our ability to have have freedom of choice from a globalised marketplace is heavily penalised, disrupted slowed down or controlled? ....and of course you just happily accepted it without complaint because, hey, it was good for our savings accounts right? You continue to perpetrate these uninformed myths. But then as you have no wish to engage with anything that might contradict your views, it's no surprise you continue to expound them. Educate yorself with a different point of view. You might learn something As for saving like Derek and Dierdre, you must be joking. At the time we could barely afford the essentials and were continually robbing Peter to pay Paul. Savings? Ha ha ha. However, now the house is paid for and we have managed to save a bit over the years, we find there is no interest whatsoever to supplement pensions or counter inflation.. We lose again. Edited January 22, 2021 by Anna B Share this post Link to post Share on other sites Share this content via...
tinfoilhat 11 #12 Posted January 22, 2021 6 minutes ago, Anna B said: You continue to perpetrate these uninformed myths. But then as you have no wish to engage with anything that might contradict your views, it's no surprise you continue to expound them. Educate yorself with a different point of view. You might learn something. So, you're saying all these workers, working for companies who have taken all these loans out so they don't fold during a pandemic would benefit from a big rise in interest rates? You might need to walk me through this one. Share this post Link to post Share on other sites Share this content via...