Thursday, 6 November 2008
BOE Interest rate cut on Glenrothes by-election polling day.
The headlines are saying UK interest rates slashed to 3%. This is without doubt (if the banks pass the cuts on) good news for many of us with variable mortgages, but the timing is just a little suspect. Why today of all days? This cut has been on the books for a couple of weeks, but it happens to be announced the same day that Labour are desperately trying to hold onto what should be their safe seat in Glenrothes. The question has to be asked - did the government have any influence over the supposedly "independent" Bank of England's decision?
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4 comments:
rerere
I don't think so - this rate cut has been on the cards for a long time and I'm not surprised they've gone as far as 1.5%. It was necessary and, if anything, overdue.
The MPC is about as independent as my a very unindependent thing it is packed with stooges that want nothing more than to prolong the zanu-lab experiment.
So no surprise they slashed so much off, speaking as a net investor from a personal point they can up for all I care as I very much doubt the cut will have any effect on LIBOR and so mortgages unless they are pegged to the BOE rate will remain the same
'The question has to be asked - did the government have any influence over the supposedly "independent" Bank of England's decision?'
Makes you wonder, especially after the result this morning that Labour have clung onto Glenrothes. However, the skeptic in me would have to doubt there was any link ...
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