Prospects of interest rates cut

BBC News - Fall in inflation raises prospects of interest rate cut

Time to grab fixed rates while we can then?

Had hoped for an increase, however, appears unlikely in the short term.

Surely if you’re borrowing, you don’t want to grab it now? As they might fall, making it cheaper to borrow?

Think he means fixed rate savings

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Inflation is already shredding any gains you’d make on any fixed rate savings. It’s better to invest it.

I do indeed.

I don’t borrow. Don’t believe in it, aside of my paid off mortgage anyway.

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Changes in the interest rate don’t seem to have had that much of an effect on borrowing rates. Credit card interest rates are still in the high teens (as they were 20 years ago); loan and mortgage rates are still between 3-8%, as they have been for a while too. However, savings rates seem to drop almost in anticipation of a rate cut.

As @Cameron suggests, investing is probably the only option right now, aside from cash put aside for emergencies.

I’ve just signed a mortgage at <2% … so not sure this is quite true.

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This. I’ve got an instant-access savings account with a few months worth of salary in it that will cover me in case of emergencies, but the interest rate is so low that everything I ‘save’ now is going into investing instead of savings.

Granted, investments may fall as well as rise, and gains aren’t really real until I sell a position; but as it stands, on paper (or perhaps I should say electrons?) my percentage increase has been greater than putting the same amount into any savings account would’ve achieved.

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Investing normally means putting money out if reach for more than twelve months to help balance out those troughs and peaks.

Personally, that does not suit me.

I accept the comments about inflation devaluing anything saved in current and savings accounts though. Purchase power depreciating month by month.

Yeah same.

Barclays launched a 2 year fix at 1.12% this week.

Same here. Never had a mortgage above 2%. Quite happy for interest rates to stay low as long as possible imo

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At least until I get my mortgage paid :wink:

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Wish rates were like that when I had a mortgage.

I fixed for 7 years in 2007 at 5.39% . . . then we had the crash and rates dropped.

At least it was paid off in 2014 :grin:

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That’s true - in my case I’m not wanting to take anything out of my stock market investments for at least ten years. Its very much a case of salting it away for the long-term. As far as what I’ve put in to crowdfunding goes, while that’s also long-term, I’m more at the mercy of the exit strategy for the companies involved, though in both cases I’d hope that if the IPO I can buy back in (and also realise I may yet lose it all).

But yeah, definitely agree that you should do what suits you, and that if investing doesn’t suit you, don’t do it! If I didn’t have an instant-access safety net, I wouldn’t be investing in anything at all.

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You’ve got the best rate on the market now :slightly_smiling_face:

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How i can get money?

Employment is the usual way. Or theft

What exactly do you mean?

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You forgot magic. :woman_mage: :wink:

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Fixed that for you :grinning:

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Is that the initial rate? If so, what does it jump to in a couple of years?