Er ... was there an interest rate announcement? I can't remember. I mean, I wasn't paying attention. 'I think there was one, last week, boss.' Okay. Well, thank you, Voice. Earning your money for once. 'Yeah, right.'
Well, we have this, dear reader(s) -
Hi Michael,
With the Bank of England announcing that interest rates will remain on hold at 0.75%, please find below comments from three UK business leaders reacting to the decision and what it means for the financial and property markets.
That's from my mate Rhys. 'Is he your mate?' Well ... he sends me PR emails.
Giles Coghlan, Chief Currency Analyst at HYCM, says: "In the lead up to today's decision, many were predicting that interest rates could be cut once again. In many ways, the decision to leave interest rates at 0.75% is welcoming news. It also means that interest rates could rise in the coming months should the so-called 'Boris bounce' continue and confidence in the UK economy return.
"More generally, today's announcement shows the Bank of England is erring on the side of caution - while the UK economy is in a stable position, there are still many unknowns on the horizon which could drastically impact investors, businesses and consumers. Brexit, of course, is chief among them.
"Ultimately, as has been apparent for some time, the current low interest rate environment means investors must look beyond traditional savings accounts to deliver competitive returns. Rising inflation means that money in saving accounts will only depreciate in value over time. That's why, I believe the decision to leave interest rates below 1% will only encourage more people to look to other investment markets over the coming months in the search for more significant returns."
Okay, okay. Thanks, Giles! / Of course, one day, there will be no Bank of England, and no interest rates. Only rocks and sea. We have to take a long-term view of things, you dig?
Time goes on forever. That's why a lot of people's idea of the afterlife doesn't make a great deal of sense. They think they'll be with their loved ones again. They think of all the fun times and conversations they'll be having in heaven. But they don't consider what the situation will be like after one billion years. They'll be bored with their loved ones. Not only that, but the reality they knew on earth will be totally gone. And they won't be able to relate to any new arrivals in heaven. I mean, people who have just passed over. (For the new arrivals, it'll be like us, uh, I don't know ... being on friendly terms with cavemen. Or even worse than that.) Also, a billion years is nothing, man. Two billion years will come and go. Then three. Then four. On, and on, and on! Five! Six! Seven! And you're still enjoying the afterlife with your loved ones?! Do me a favour!
Jerald Solis, Director at Experience Invest, says: "In normal circumstances, interest rates being put on hold isn't exactly a newsworthy event. Today's announcement is different, however. It shows the Bank of England is cautiously optimistic about the future growth prospects of the economy, even with Brexit on the horizon.
"Yet with interest rates still below 1%, investors and savers will be looking at ways of making their money work harder. Indeed, amidst the continuation of low interest rates, last year a survey by Experience Invest found that 59% of property investors said they were actively seeking ways to make greater returns on their investments. This looks likely to remain the case for the coming months at least.
"With interest rates hovering below 1% for over a decade now, the question on everybody's minds is how long it will be before the Bank of England is prepared to increase the rate of interest to a whole percentage."
Okay, okay. Thanks, Jerald! / Listen, kook(s)! The afterlife is all about pure spirit and consciousness. That's the beginning and the end of it. You won't have an identity. You won't have loved ones. FFS.
Paresh Raja, CEO at Market Financial Solutions, says: "The Bank of England treads carefully when deciding on the interest rate, so the fact they've decided to leave it at 0.75% is an important decision. Investor confidence is returning, and we are likely to see the markets post a modest performance in the aftermath of this announcement.
"Low interest rates work to the advantage of borrowers; I expect many lenders to review their rates and consider further cuts to ensure they have an edge of their competitors. When it comes to mortgages, however, this doesn't necessarily mean getting a loan from a bank will become any easier. To minimize their risk exposure, banks are tightening their lending criteria, making it more difficult for investors and businesses to access finance they need to buy a property.
"Overall, I'll be interested to see how this rate cut affects the property market, and whether the Bank will consider further rate hikes over the coming months depending on how Brexit plays out."
Okay, okay. Thanks, Paresh! / Now, this life ... Well, there's only one way to buy property, and that's with cold, hard cash. That's the way I'll be doing it when my ship comes in. About $10 million for that house in Malibu, unless I decide to go for a bigger one, which is entirely possible. Jackie Treehorn's house has got to be in the $60-80 million range. / Actually, what I'll probably do is ... start off with the small house, and then get a bigger one, say, five years later, once I'm firmly established as the greatest rock legend ever. 'You'll need more room for the Malibu Mafia, boss.' Exactly!
ENDS
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Anything else? No.
Laters!
