How low will interest rates go... and will they stall earlier than we think?

Get the full episode insights!

Enter your email below to get notified about more insights from:

This is Money Podcast

This episode is titled:

How low will interest rates go... and will they stall earlier than we think?

Notable Quotes

"If something is too good to be true in terms of price, it's very likely that it's going to be a knockoff."

"I think a lot of neighborly disputes come from not compromising."

"You have to think, this isn't a victimless thing; it costs the economy."

"The best way to start the habit is through a regular savings account."

Episode Summary

In this episode of This is Money, hosts Georgie Frost, Simon Lambert, and guest Lee Boyce delve into the Bank of England's recent decision to cut interest rates from 4% to 3.75%. The overall vote by the Monetary Policy Committee was tight (5-4), indicating some dissent on the cut. They discuss how this reduction will affect mortgage holders positively while posing challenges for savers, despite some competitive savings rates still available. The conversation warns that while rates are set on a gradual downward path, future cuts could be more uncertain.

The hosts also explore financial trends popular among younger adults, highlighting that a significant percentage plan to engage in savings challenges next year, such as the 100 Envelopes challenge and 'no spend' months. Lee explains these challenges as creative methods to inspire savings, emphasizing the importance of developing good financial habits.

Additionally, a new calculator released by Money Mail, in partnership with the Office of National Statistics, allows users to compare their household income against neighbors, illustrating the impact of dual incomes on financial stability. This leads to a discussion about neighborly disputes, particularly regarding property rights when a neighbor seeks temporary access to your garden for construction purposes.

Lastly, the hosts shed light on the counterfeit goods problem, particularly during the Christmas shopping season, detailing the economic impact and dangers associated with buying fake goods. They provide insights on how to avoid counterfeit products and emphasize the importance of supporting legitimate businesses during the festive period.

Key Takeaways

The recent interest rate cut by the Bank of England is beneficial for mortgage holders but poses challenges for savers.

Younger generations are turning to social media for financial inspiration, particularly savings challenges.

A new calculator allows consumers to compare their household income with neighbors and assess their financial standing.

Counterfeit goods pose significant risks not only financially but also in terms of safety, particularly during the holiday shopping season.