Comments on: Prospect of 0% Interest Rates

By: The Credit Cruncher

The Credit Cruncher — Fri, 27 Feb 2009 23:54:52 +0000

I am quite sure the banks have a negative mortgage get-out clause in their small print, though it would be fabulous to be paid interest on debt, there would be a rush to get into as much debt as possible!! The US is already flirting with 0% interest.
The effects on the exchange rates of ‘quantitive easing’ have me worried, the firm I work for is a distributor of US and European goods…

By: gary lammert

gary lammert — Sat, 21 Feb 2009 22:01:49 +0000

Even zero rates – when UK houses are grossly overpriced relative to wages and to the declining jobs to support those wages – will not be sufficient to remedy the failure of continued payment on the overvalued principal.

By: John Porcella

John Porcella — Sat, 14 Feb 2009 16:09:34 +0000

According to MoneyFacts quoted in the Financial Times of Saturday, February 14th, falling rates of inflation have made for HIGHER real rates of interest for savers than even one year ago, when interest rates were very much higher!

By: Weekend reading for investors: 14/2/09

Weekend reading for investors: 14/2/09 — Sat, 14 Feb 2009 10:55:35 +0000

[...] The UK-focussed Finance Blog considers the prospects and consequences of 0% interest rates. [...]

By: Monevator

Monevator — Sat, 14 Feb 2009 09:32:19 +0000

The Bank of England will have to turn to quantitative easing soon, in my view. It simply cannot cover the losses of the major banks, so it needs to stop asset prices falling… if that requires inflation, I think that will be seen as the lesser of two evils.