I was never confused!!!

There's no logic to those calculations!

About 5 months ago £1 would get you about 98cents (retail). Now it's about 10% better. On the principle of following the trend you could say in 5 months time it will be another 10% better. But I won't - I expect it will bob around waiting for the next big "unexpected" event to cause more panic in the markets. Depending on whose crisis it is the pound could rise or could fall.

euro gone 1.137 to the £ today on the money markets.

can't think of a username wrote:

euro gone 1.137 to the £ today on the money markets.

I do hope it keeps improving, and I would like to see a reasomanle currency rate of arround 1.20E to the pound

I'm seeing 1.11595 today according to http://www.xe.com

Dropped back to 1.116 this morning, I am hoping we will see a rise in interest rates soon to the £ a boost.

can't think of a username wrote:

Dropped back to 1.116 this morning, I am hoping we will see a rise in interest rates soon to the £ a boost.

I'm not hoping for an interest rate rise I far prefer having a cheap mortgage. What I save on that can always be used to buy a few extra Euros for a fornights hol if I go to a Eurozone country.

Interest rates could hit 8% within the next 3 years to bring inflation under control, the inflation will be imported because of the weak £ and the weak £ can't be allowed to stay so weak.

All with a mortgage could be in for a shock and the housing market will continue to correct itself and work out the over inflated prices.

I'm not naive, I know it wont last forever maybe a year if we are lucky, but I still like the low interest rates. I'm just trying to save the difference at present.

I remember interest rates at 15% so you are not putting the fighteners on me by quoting 8%.
Do you work on the money markets ?

For purely selfish reasons, I hope interest rates rise soon. Interest on my savings used to help pay for my hols. Now I get hardly any interest

Surely the government knows if they put interest rates up to 8% then no-one will be spending again!!!

Surely the government knows if they put interest rates up to 8% then no-one will be spending again!!!

That's probably true for people with mortgages but people like myself with savings will probably have more to spend. We have to look at both sides of the coin.

doepsmc

I don't work in the money markets but trade the world stock markets, but everything needs to be watched. Cable/sterling is undervalued now and other currencies over valued.

Interest rates did hit 15% but a 8% interest rate is equivalent to a rate over 16% to 20% in real terms to people who took out mortgages in the last 5 years, many took out mortgages at fixed 2% or 3% for a number of years and then having to pay 8% will really hurt, even now mortgage rates are not low.

Even though i go to Spain quite a lot, i have my own selfish reasons like shirley h for the Euro to stay strong against the pound!!

That's probably true for people with mortgages but people like myself with savings will probably have more to spend. We have to look at both sides of the coin.

I get what you are saying but the reason the rates are so low is because the government wants people to spend, spend, spend! They need money pumped into the economy. I don't think most savers would do this with their extra savings! People need to have a lot of savings to equate to the amount now being saved on a mortgage each month! Our mortgage is now £200 less than 6 months ago. Our ISA's used to bring in £60 a month but now they bring in about £1.50!!!
I'm not saying savers don't deserve money I'm just looking at it from the governments point of view and I think if rates went up to 8% then we'd be in the exact same situation as 6 months ago with no-one spending!

Think you are probably right from the governments point of view Chivas they are trying to kick start the economy and the bit of interest people get on their savings just doesn't do this (well not unless they have 1000's of thousands lol) As you say those that are saving 300 or 400 pounds on their morgages are more likey to spend, than those who get an extra 50 quid a month on their savings. Also they will be younger people in their 20's and 30's with families and will buy stuff for their homes, white goods, may move house etc. Older people just tend to spend on holidays which takes the money out of the UK anyway.

I do feel sorry for pensioners though that rely on their savings to boost their pensions to actually live (not holidays, I mean essentials like food, heating and bills) my elderly Dad falls into this category.

Older people just tend to spend on holidays which takes the money out of the UK anyway.
I do feel sorry for pensioners though that rely on their savings to boost their pensions to actually live (not holidays, I mean essentials like food, heating and bills) my elderly Dad falls into this category.

Doe, Yes, pensioners are finding it difficult and even pensioner's things need replacing eventually.
I've recently had a new suite, new carpets, decorating and a new block paving drive, I couldn't keep putting off spending the money, the concrete drive was collapsing in places.
I'm getting nothing on my savings and I've just lobbed out nearly £1,500 to Thomson.
The interest on our ISA's used to pay for one holiday, now we'll be lucky to get the price of the taxi fare to the airport.
I don't have a mortgage, but have been through the 15% era and even without a mortgage it is impossible to live on a state pension.
Money in my bank account is running through my fingers like water through a sieve and when the gas/electric bills come in, I have to make sure I'm sat down on a chair, I saved for many years for a rainy day, well the rainy day is here, but it's like a monsoon.
But, I expect nothing less because the pensioner's are always shafted by governments and whoopppee do dah, they gave me a £3 rise in April for which I have to be eternally grateful, but then they usually take it back and some more by shafting my husband with tax on his pension.

So, if you think the situation is bad, wait until you become an OAP and that money which you saved for all those holidays that you never took because you were busy working and bringing up a family, is now being taken out of the bank to pay the bills and you're getting sweet FA for keeping it in the bank anyway
Sanji

I know Sanji it must be dire to have to try and eek things out when savings are your source of income. My Dad had to have a new bolier and it was nearly 4K, but he couldn't be cold at 87. His 3 quid extra didnt cover much of that.

I checked a cash ISA I had and was getting 0.5% and a shares one was less than I had actually put in to it. not much you can do about it really. I know what you mean folk who save for their old age are penalised in a way.

I should probably take the money out and just blow what's left on holidays and trust my future to luck, but it seems irresponsible. Opps getting too political now.

Doe

euro 1.125 to the £ on moneymarkets, I want to see it break the 1.15 level and stay above there would mean a recovery on the way. When £ does turn around it will move fairly quickly upwards.