Help . . . Is The £ Going Into Free-fall?

[chiang mai]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

Edited November 6, 2008 by chiang mai

[lannarebirth]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

Bank slashes rates by 1.5%

By Norma Cohen Published: November 6 2008 12:01 | Last updated: November 6 2008 12:01

The Bank of England’s Monetary Policy Committee slashed its key rate by an unprecedented 1.5 percentage points to 3 per cent on Thursday, underscoring its deepening concern over a contracting economy.

[it is the first time since the MPC was formed in 1997 that it has moved interest rates by more than half a percentage point. The Bank itself however cut rates by a full percentage point in January 1993 to 6 per cent from 7 per cent when economic conditions clearly warranted it.The move was entirely unexpected.

http://www.ft.com/cms/s/0/633f10a4-abf0-11...0077b07658.html

Edited November 6, 2008 by lannarebirth

[chiang mai]

Despite the sudden and large scale upwards movement in GBP value since the BOE announcement I sense this may all be a bit like the US stock market gains prior to the US election result, a large upswing and then and then a large fall. Perhaps the best thing to do is to view again after a full day of trading and see where things have settled. As usual, best hopes for non hedged GBP holders.

[lannarebirth]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

the US Fed cut rule is, the initial direction of the move is true direction, within a few hours.

[binnsy]

1.5bp thats a nice little early xmas pressie good old Gordon and his pals in the BOE

[Naam]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

1.59608

[Naam]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

[chiang mai]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

1.59608

1.5965 - best we all sleep on this one for a while 'till it decides what it wants to do, could still be spectacular though.

[cmsally]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

1.59608

1.5965 - best we all sleep on this one for a while 'till it decides what it wants to do, could still be spectacular though.

Oh goody, glad I didn't buy more dollars yet

Somehow I can't see GBP going much higher though. There does seem to be a bit of a correlation though with stockmarket down currency up. Personally I don't think Gordon is too worried , I think he made a nice big fat commission on the the new kitsch golf course that Trump is planning for the Scottish coast. Funny that it got passed just when the currency swung in his favour.

[Naam]

1.58782

[cmsally]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

Seriously, if some people were counting on that scenario they are in deep sh..

[totlanh]

1.58782

Hope im wrong,as im due to move permantly back to Vietnam next month and am wanting to move a sizeable sum of money over,but i think the GBP is screwed

[chiang mai]

The trend line of the pair reminds me of the boat at the end of "Perfect Storm" and must confess I'm getting a tad

[lannarebirth]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

The rates enjoyed by most of the commonwealth countries were nothing to be sanguine about. I lways look upon it as the cheese you bait the trap with. Pretty good cheese, pretty nasty trap.

[12DrinkMore]

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

All I need is a yield above the rate of inflation. If inflation sinks to 2% as the MPC seems convinced, then a deposit rate of 4.5% will be OK.

And 4.5% is definitely doable, as any number of financial institutions are desperate for GBP refinance and more deposits, so they will have to pay. However the GBP/THB exchange rate is a killer at the moment.

Sooner or later the world recession will bite into Thailand, probably into <deleted> of the politicians who have their heads firmly embedded into the sands of lies, and they will have to do something or it will be done for them, once again.

[neil324]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

Fixed rate accounts, don't ya just love em

[neil324]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

1.59608

Yeh more brits on the piss

[MJP]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

Bank slashes rates by 1.5%

By Norma Cohen Published: November 6 2008 12:01 | Last updated: November 6 2008 12:01

The Bank of England's Monetary Policy Committee slashed its key rate by an unprecedented 1.5 percentage points to 3 per cent on Thursday, underscoring its deepening concern over a contracting economy.

[it is the first time since the MPC was formed in 1997 that it has moved interest rates by more than half a percentage point. The Bank itself however cut rates by a full percentage point in January 1993 to 6 per cent from 7 per cent when economic conditions clearly warranted it.The move was entirely unexpected.

http://www.ft.com/cms/s/0/633f10a4-abf0-11...0077b07658.html

Expect more of this in the coming months. Expect base rate 1% or lower.

The fact the CB's haven't yet grasped the fact they no longer matter is a mystery to me. W

[Marvo]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

Fixed rate accounts, don't ya just love em

Just applied for a Nationwide Fixed Rate Bond today - fixed at 6% for the next 3 years .

Here's hoping the offer doesn't get pulled before the application is processed

[neil324]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

Fixed rate accounts, don't ya just love em

Just applied for a Nationwide Fixed Rate Bond today - fixed at 6% for the next 3 years .

Here's hoping the offer doesn't get pulled before the application is processed

You applied by post? If you have an esaver with them can be done online instantly

[thecatman]

Correct, you can. I've just done a 6 month bond with them online in the last 10 mins. (fixed at 6%).

[Marvo]

You applied by post? If you have an esaver with them can be done online instantly

Only just applied for the Flex Account so can't apply yet for the e-bond. Banged in the Fixed Rate Bond application to see if that gets me in in time.

[beginner]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

Nationwide International have dropped their one year fixed rate from 6.65% to 6.25%.

Offshore HSBC are offering six month fixes of UK pounds 5.25% Euro 4.5% USD 2,75%

Sounds like a fair deal to me.

Edited November 6, 2008 by beginner

[Mosha]

I think that has just wiped out my 5% increase in my company pension.

[Naam]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

Nationwide International have dropped their one year fixed rate from 6.65% to 6.25%.

Offshore HSBC are offering six month fixes of UK pounds 5.25% Euro 4.5% USD 2,75%

Sounds like a fair deal to me.

i have no idea how HSBC can manage that. i am on the verge of selling my german "Bunds" und american "USTs" and move to €UR as well as USD cash again because Singapore is -like most other countries- now guaranteeing all bank deposits. what my bank is offering (i am not talking of peanuts but seven-digit cash) is

€UR:

overnight 3.300%

1 week 3.389%

2 weeks 3.577%

4 weeks 3.957%

6 months 4.006%

USD:

overnight 2.260%

[Mosha]

Fromthe BBC ticker bar just now. GBP = 1.5626 USD

The IMF is saying Japan, Germany, UK, US will be in recesion 2009. Markets to shrink globally be .3% I think they said. UK growth forecast at 1.3%

[LaoPo]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

Nationwide International have dropped their one year fixed rate from 6.65% to 6.25%.

Offshore HSBC are offering six month fixes of UK pounds 5.25% Euro 4.5% USD 2,75%

Sounds like a fair deal to me.

i have no idea how HSBC can manage that. i am on the verge of selling my german "Bunds" und american "USTs" and move to €UR as well as USD cash again because Singapore is -like most other countries- now guaranteeing all bank deposits. what my bank is offering (i am not talking of peanuts but seven-digit cash) is

€UR:

overnight 3.300%

1 week 3.389%

2 weeks 3.577%

4 weeks 3.957%

6 months 4.006%

USD:

overnight 2.260%

1. Singapore: without limits ?

2. Indeed amazing that (offshore ???) HSBC offers 0.5% higher/6 months deposit in €uro than your S'pore bank....strange; but maybe worth to double check...

3. Back to the topic: I don't think the -now 3%- BoE rate will stay in place very long; I think it will go down lower..and lower. They have to, at least TRY and rescue the declining economy and boost it.

The problem is also the still steep mortgage rates; a girlfriend of ours has a house in London and her mortgage renewal is due in January 09.

After the last cut of 0.5% the bank didn't even offer her a lower rate and it remains to be seen if they will after yesterday's cut of 1.5%.

They're more interested to increase their balance sheets rather than to help their clients. Stupids.....it WILL bounce back upon them if they don't see that and help their clients.....

LaoPo

[chiang mai]

There's a strong case to be made suggesting that UK banks/building societies who offer deposit rates that are way over base, are in trouble. Offshore deposit takers in the Isle of Man were all the rage for a while there but as others have pointed in this forum, the top rate payers are all now out of business or government owned/backed.

GBP/USD this morning: you were correct as usual LRB, it's back down around 1.5550 and the trend remain extremely bearish hence I expect GBP/THB to fall today.

[Naam]

The problem is also the still steep mortgage rates; a girlfriend of ours has a house in London and her mortgage renewal is due in January 09.

After the last cut of 0.5% the bank didn't even offer her a lower rate and it remains to be seen if they will after yesterday's cut of 1.5%.

They're more interested to increase their balance sheets rather than to help their clients. Stupids.....it WILL bounce back upon them if they don't see that and help their clients.....

LaoPo

i expect political pressure on the banks to lower their rates for mortgages. but they will definitely NOT pass on the full cuts.

[rott]

BOE cut the rate BY 1.5% to 3%, this should be interesting. There must be a chance here that GBP will strengthen instead of fall as the world sees that the UK is serious about taking action. Oh bugger!

That's an interesting turn of events, I must say. As usual, I'm not sure what to make of it.

unfortunately it will teach a harsh lesson to our british friends who thought that 6%+ yield for cash GBP will be paid till pigs will grow wings and fly and the cows come home to roost in the chicken coop.

How about our friends who invested in Turkish Lira?