Time has come to reduce the bank rate....

[barry_1]

....i hope Tito has taken note,Britian has dropped their rate by a massive(for them) one and a half percent ,which will help their businesses survive....here in December he should surprise us all by dropping ours by TWO PERCENT!!!!!!!...Really there is no chance of inflation taking off,there are no surplus funds left out there and many smaller companies are on the brink of bankruptcy....Certainly our people wont go out and waste money over the holiday season as jobs are being lost every day and there is nothing to celebrate!

[#2]

I think the rate drop by the BOE looks like a panic move and is not a good thing at all. They needed to reduce rates, but by 33%!? All it will do is stimulate the economy in the short term by inducing people to incur more debt, propping up the economy on expensive debt and increasing their debt to income ratio even more. Inflation will go up and rates will have to increase again, causing more bad debts, government bailouts etc. Future generations will still be funding this for many years to come. It may be better to take some pain now and let the recession run its course...

[#3]

What would happen in a world where Banks are cash flush, but nobody wants to loan the Banks money? Something I have always been curious about as there is apparently so much liquidity being pumped into the system on a daily basis, but is this money being taken up in the form of loans etc.

[CrownA]

Tito better catch a wakeup. People are losing jobs, and csahflow is tight.

[louisg]

As long as the rand behaves, I won't be surprised if Tito reduces rates by 50 basis points at the December MPC meeting. Inflation appears to be heading down significantly. Growth, employment, higher impairment levels of the retail banks, etc. surely must be of great concern to the MPC. Just maybe...

[Fredsed]

Being able to short is more important than anything during this collapse phase. Inflation means resurgence - welcome it when/if it comes and deal with then, not now. Rand stability is unobtainable, brace. Interest rate reduction is best commenced once resource prices have bottomed and capital inflow resumes.