Base rate is now 2%

[javalord]

Does anyone know whether this effected the UK goverment's credit default swap rate? Was standing at 107.5 points ... before the interest rate drop.

As a baseline, Italy has the highest, at 150 points.

[muddyfox470]

As has been mentioned its a global crisis that amazingly not many people saw coming, I'm amazed that the high fixed rates were still available 1/2 months ago.

As a saver I am a bit annoyed, but there is nothing that I can do, it's for the greater good of the country and the economy - I've seen some people seeing it as a personal vendetta on them. I'm glad Gordon decided to give the bank independence as it has definitely made a difference.

Only personal problem for me now is to wait and see what the inflation rate is in March, as that's what my student loan is linked to, so before when the base rate was around 5% and IR's were touching 7% I was doing ok [paying for a few extra beers each week], but if my savings trail inflation and the IR on my loan I may as well pay it back asap.

Just got to ride out the storm really. Good time to have a tracker mortgage. I think Halifax recently announced they will be passing on any rate cuts in full to the holders. Now one thing that peevs me off is banks and building societies and banks (Britannia in particular) that love reducing rates by the full percentage point drop, but when it does start going back up they only give a fraction of the change.

It's anyone's guess what will be happening in a years time and in 2010 (when we are supposed to be coming out of the recession). It does seem like it is a bad time for us to be hosting the 2012 olympics though

[Barrichello]

From a personal side - very happy as my mortgage goes down again. (gone down total of £450 a month since the interest rate slide started) spose i should be a good citizen and go spend more this xmas to try keep the economy going lol!!
Luckily Chelsea BS has no collar as well, seems some people with trackers are unlucky that they have collars on how low the rate goes. Heres a list of who does/doesnt....
http://www.telegraph.co.uk/finance/p...rest-rate.html

Funny watching the FTSE though at midday when it was announced, getting the feeling the markets priced in a bigger drop. Sure with non-farm figures tomorrow the world markets might take another hit!