Thursday, January 8, 2009

Bank of England Cuts Rate to Lowest Since Bank’s Creation in 1694

"The Bank of England cut the benchmark interest rate to the lowest since the central bank was founded in 1694 as policy makers tried to prevent the credit squeeze from deepening Britain’s recession.

The bank rate was reduced a half-point to 1.5 percent, bringing policy makers closer to the point at which they will run out of options to fight the financial crisis with conventional tools ...

The benchmark rate has never been this low since King William III founded the central bank to fund a war against Louis XIV’s France. The rate began at 6 percent and fell no lower than 4 percent throughout the 18th century. It touched 2 percent several times in the second half of the 19th century. The central bank held it at that level throughout World War II until 1951."


Bloomberg

5 comments:

Philip said...

So, is this bad or good? Discuss.

Stephen said...

The rate itself is not really a big deal other than being an interesting anomaly (1694 is a long time ago). Central banking and inflationary monetary policy--definitely bad.

Vancouver real estate agent said...

Some free banking fans call 1694 "The year when the evil was born" I think there was never such a big wave of "money sales" (take bag of dollars, one plastic bag of pounds for free) in history, not even during the GD (just in Germany, but it's hardly comparable). USA, Japan, UK...some results? None. Maybe just the pains will be postponed a bit more...
Jay

Alessandro Machi said...

It's a lot about the credit card interest rates. Allow people to pay off their credit card debt and zero perent interest.

Instead, the scam appears to be to force people to declare bankruptcy or insolvency, ruin their credit standing, and seize their property.

http://www.DailyPUMA.com

Alessandro Machi said...

It's a lot about the credit card interest rates. Allow people to PAYDOWN their credit card debt at zero percent interest.

Instead, the banks appear to prefer forcing people to declare bankruptcy or insolvency, ruin their credit standing, and also seize their property, all the while collecting huge wads of new money from the government.

http://www.DailyPUMA.com