Credit Card rates are increasing (eg Egg), Savings rates are decreasing (eg ING) yet the Base Rate has remained the same. Is this all pre-empting a drop in the Base Rate next month ? Does an increase in CC rates comply with this, I'd have thought it would have been vice versa.
Joe
They're pre-empting a drop so they can drop interest rates again then too!
I almost understand why ING have dropped their rates. It was at 5%, which is above the base rate already. I just hope they won't drop them again if (when?) the base rate goes down by a quarter next month.
As far as Egg increasing their rate, I have no idea why they're doing that. Especially when they're going up a whole percent from 14.9 to 15.9. How any credit card company can justify charging over 10% more than the base rate is quite beyond me. Maybe they're being "hurt" by their annual 0% offer? (and by "hurt", I mean, not making as much profit as they otherwise would).
Just goes to show that only a fool borrows money on a credit card.
A.
Can anyone tell me when the bank of england announce the new interest rates and how often they meet to decide the rates ?
thanks
Lee
Normally first Thursday each month (not sure if they meet Tues-Thurs, or just Weds-Thurs)
This is the second time this question has been asked within the last couple of weeks. The answer is they announce their decision on the Thursday following the first Monday of each month. The next announcement will be made at 12 noon on Thursday of next week.
Chris
Egg will already know the cost of the annual 0% offers as they will have calculated the worst case scenario (i.e., everybody doing it, every year). I suspect a lot of people don't do it (like me), so that is a benefit back which will improve their profits.
Egg are simply recouping the money it has lost over the number of years and the 1% increase in the rates reflect this. They can't stay or be near the top forever, and the once time problem child and star is becoming a cash cow. Wonder how long before it becomes a dog?
They just made their first profit IIRC. At whose expense? As for me - I'll keep a bit in my Egg savings account so that I can use their excellent money manager. But there's no way I'll ever again use their green card - or succumb to their repeated (desperate?) pleas to take out a blue card.
Brian
They have metting every month, all future meetings can be found in the following link:
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.