Interest rate cut

Nov 07, 2008 19:28


Well, this should be interesting. I reckon the good ol' bank of England wanted to implement about a 0.75% cut and knew that whatever it did would not get passed on properly so made a larger cut in order to achieve what it actually wanted. Only thanks to the Government hectoring the banks it looks like almost everyone gets the lot. If I'm right, then there will be a load of economists running round going 'Oh crap, we didn't actually MEAN that!'. Still, mustn't grumble I reckon, even if that may be it for a while.

Of course, if my theory is wrong, there may be some more in a month or two...
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