THE Bank of England today cut interest rates by quarter of a percentage point to five per cent amid growing concerns over the global credit squeeze.
The latest cut is the third since early December last year.
However, the cut is unlikely to be passed on to homeowners, as banks and lending institutions continue to face difficulties on the money markets, and the rate that banks lend to each other remains high.
The Monetary Policy Committee has resisted previous calls to cut interest rates over fears that inflation continues to run above targets.
What do you think? Have your say.
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alvinlwh (10/04/2008 at 12:17)
The Bobelesque, MANCHESTER (10/04/2008 at 12:25)
Black Flag (10/04/2008 at 12:27)
No, reduce income tax. Fuel duty has good effects, income tax doesn't.
wayneold, manc (10/04/2008 at 12:50)
jacko101 (10/04/2008 at 12:58)
You won't get a state pension either, or indeed any pension. What are you going to do when you get to 65 (increased to 68 soon) work cash in hand until you die?
Or were you saying something else?
alvinlwh (10/04/2008 at 13:00)
The Bobelesque, MANCHESTER (10/04/2008 at 13:04)
jacko101 (10/04/2008 at 13:17)
And of course, just because you get paid cash, doesn't mean you don't pay tax. I just assume from what he was saying that he wasn't.
Anyway, where's my pie?
Black Flag (10/04/2008 at 13:33)
On the other hand, sending money overseas is a bit of a double edged sword. It has to come back into the UK at some point and when it does come back to be spent, it creates jobs. I'm not a big fan of the idea that creating lots of work is automatically a good thing, but I'm aware that many people are.
The whole issue of what level tax should be set at is a difficult one to resolve, but, whatever level it is set at, I think it is better to obtain it by taxing activities which have a negative effect on other people (such as using fuel, which creates pollution and leaves less for everybody else), than taxing things which don't have an inherently negative effect on anybody else, such as income.
Tax people for what they take, not what they make.
wayneold, manc (10/04/2008 at 13:39)
There are still many people in Manchester who live day to day life’s rather than in full time (legal) employment.
I was wondering how interest rates effect people who do not pay tax, mortgage payments etc?
better off red (10/04/2008 at 13:43)
keep the bank rate the same.
cut fuel duty.
increase road tax for older (polluter) cars.
stop this senseless system that allows the spongers of the world to ride the system.
better off red (10/04/2008 at 13:56)
but I do like the word sponger, everyone knows who I mean.
jacko101 (10/04/2008 at 13:56)
It affects mortgage rates and savings rates, so if the rate goes down people borrowing money gain, but savers lose and vice versa.
If you don't pay tax, that's an altogether different matter. The question is why don't you pay tax? If you work for a living you certainly should.
Mike S, Manchester (10/04/2008 at 14:24)
There's little point in the B of E lowering interest rates if the benefits aren't passed on to the people for whom it's intended (i.e. the general public). If the banks refuse to pass them on, it only serves to increase the banks' profit margins and will do nothing to stave off a recession.
The B of E should make a condition of any drops in interest rates that they must be passed on in full to customers. The banks have no problems raising their rates immediately as soon as the B of E increases them!
M C Spanner (10/04/2008 at 14:25)
By day to day lives, I assume you mean avoiding paying their share. These are probably the same people who will clog up our hospitals and expect free treatment, complain that the state pension is not good enough & complain that the police are not solving crime (while buying their copy DVDs and untaxed beer and fags "off a mate".
This cut won't affect you in any way because you are one of life's takers. You will carry on taking rather than paying your way.
wayneold, manc (10/04/2008 at 15:01)
I'm sat in my nice office, paying plenty of tax along with my employer!
jacko101 (10/04/2008 at 15:15)
The Bobelesque, MANCHESTER (10/04/2008 at 15:51)
You never said you wanted a pie! They've all gone. I could do you a boiled egg and a slice of toast.
wayneold, manc (10/04/2008 at 16:10)
I don’t know anyone!
I just wanted to know if in the current money situation how other people are affected. If you don’t pay taxes, mortgages etc does this "credit crunch" affect them?
I was brought up to work for a living and have gone through the whole education process to succeed in having a good job, i go to the local shopping centre and see people from my school embroiled in the life of crime and unemployment yet they all have nice cars, clothes etc. Why and how?
I work full time and seem to be getting less money every year! GGrrrrr
jacko101 (10/04/2008 at 16:17)
I'll have some toast, with a bit of bacon, egg and tomato.........
David,North M/C (10/04/2008 at 22:50)
alvinlwh (11/04/2008 at 10:27)
BluePolarBear, ex of Stockport (13/04/2008 at 02:53)