UK interest rates lowered to 0.5%

[dipsydoodle]

Source: BBC News

The Bank of England has cut interest rates to 0.5% - a fresh all-time low - and says it will now boost the money supply to help revive the economy.

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The Bank said it would expand the amount of money in the system by £75bn in an attempt to boost bank lending.

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While the Bank will initially add £75bn, Chancellor Alistair Darling has given it permission to extend this to up to £150bn.

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Quantitative easing is sometimes incorrectly referred to as printing money, but the Bank will not expand the supply of money by making new banknotes.

Read more: http://news.bbc.co.uk/1/hi/business/7925620.stm

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The effect of this interest rate is totally wild in some instances where the rates in some interest only mortagages are tied to that rate in some shape or form. It was never foreseen that interest rates would go this low.

[harmonicon]

1. ahh.... and my paycheck is worth even less.

super.

[conspirator]

2. I have a savings account here in UK and my savings are becoming worthless day by bay

Inflation here is starting to look like south america. I think I am going to spend all my money, buy cars or something, before it becomes toilet paper.
I remember when the pound was 1.5 euros. Those were the good days. Now I can't even afford a decent holiday.

[harmonicon]

3. yeppers

I have loads of student loans back in the US, and was counting on my frugal way of life here being worth it so that I could pay back a big chunk of those loans. I'm an idiot. I could have moved a few grand into dollars last year when the exchange rate was 2 to 1 and taken out about 20% of my loan, but I decided to hold off, because I wanted to have savings in case of emergency. Well, the emergency is that paying back the loans is now a fucking pipe dream because I held off.

I also have a lot of traveling in Europe to do over the summer for research purposes (I'm doing a PhD in the UK), and don't really know if I'm going to be able to afford it. It's as if my paycheck has been cut nearly in half. Heccuva job, Brownie.