PKV Foren für alle Private Krankenversicherung

Yesterdays announcement by the Bank of England delivered an
unexpected statement that they were cutting their base rate by 1?% from 4.5% to
3%. It has been done to kick start our stalling economy and to try and prevent a
deepening recession. Everyone was expecting a ?%; but Dion
Phaneuf Kings Jersey , we all hoped for a full 1% interest rate
cut, so this announcement was a real surprise. This interest rate cut is the
largest ever percentage cut in British history; the lowest interest rate cut in
53 years and the last time we saw a full 1% interest rate cut was back in
1981.

So the question we should all be asking now is. ?What does the Bank
of England know that needed such drastic action?? They are normally such a
cautious institute that has a history of ?% cuts and increases. We know that
millions of families are struggling, unemployment is rising and will soon reach
2 million Jeff
Carter Jersey , the manufacturing industry is on its knees with the
lowest sales, companies are implementing a three day week and Christmas spending
is looking like a wash out. I believe they saw an economy on its knees and close
to slipping into a deep recession.

The drop in interest rates were to
stimulate our economy and yes it may do that; if the banks pass the interest
rate cuts on in their entirety to the mortgage borrowers. A 1?% interest rate
cut to a homeowner with a ?100,000 mortgage would reduce their mortgage payment
by ?125 per month. Unfortunately this will only help borrowers on a standard
variable rate Tyler
Toffoli Jersey , tracker or discount rate mortgage that is linked
to the Bank of England base rate. It will not help anyone with a fixed rate
mortgage. It is hoped that this interest rate cut will encourage us to start
spending in the shops and that should get the economy moving again.

The
banks need their interbank lending rate known as the Libor rate to reduce so
that banks can start to borrow money from each other. The libor rate is still
far too high. The banks need to reduce their libor rates so they can start
offering better remortgage deals. There are millions of homeowners who are
desperate to remortgage to a better rate. Homeowners looking for a new
remortgage product should watch out for banks offering mortgages products with
large arrangement fees. It might be better to consider a mortgage product with a
higher interest rate and a lower arrangement fee; than a lower interest rate
with a higher arrangement fee. Consider using a mortgage broker to find the best
remortgage product to suit your circumstances that saves you real money. Latest
news is that the Libor rate has just fallen by over 1% to 4.49% on the back of
the Bank of England?s decision yesterday ? there is hope!

The decision by
the Bank of England is not welcome by everyone, especially savers and
pensioners. They rely on their savings for an income to live and this interest
rate cut has reduced their incomes by 33%. This will hurt savers that are
pensioners more than anyone else as they live off their savings and do not have
a job to support themselves. Most of these people have saved all their lives and
now when they need a decent income in their retirement the Bank of England hits
them the hardest.

So what is the answer? Well if we let inflation take
over we will have everyone asking for bigger annual pay increases; mortgage
rates will rise and the people who save money will get higher returns on their
money invested. To see the consequences of a country that has been ravished by
inflation you only need to look at Zimbabwe where they have major monetary
problems caused through politics. Their inflation rate has risen to a staggering
100,000% and a loaf of bread now costs 16 million Zimbabwe dollars. They
actually have 50 Tanner
Pearson Jersey , 100, 200 and 250 million dollar bank notes. A $50
million dollar bank notes is enough for three loaves of bread. Scary isn?t
it!

We must hope that the Bank of England has seen something in their
crystal ball and that they have taken the correct action ? there will always be
winners and losers. Time will tell whether the Bank of England has made the
right decisions.
Author's Resource Box

Jenny Austin is a Money Saving Expert [u], for further information on how
to choose your [u]Debt Consolidation Loan [u] Nate
Thompson Jersey , please visit http:
talkmoneyblog.co.
Soccer Jerseys
China Hockey Jerseys
Cheap Jerseys
Online MLB Jerseys
China New NHL Jerseys
Cheap Football Jerseys
Cheap Nike NCAA Jerseys
Cheap Basketball Jerseys
Cheap Authentic Soccer Jerseys
Wholesale College Baseball Jerseys
Cheap
[/u][/u][/u]