Wednesday, September 03, 2008

Falling Interest Rate

For some odd reason while interest rates are dropping, Wizard Home Loans has put up the interest rate charged on one of their credit cards for new customers. How odd!

The home loan interest rate has generally fallen by 25 basis points, or 25 points, or .25 per cent, or .25 of a per cent, or .25 of one per cent, or a quarter of one per cent.

Would it be so hard for some consistency with the way interest rate is expressed? Doesn't the word point that precedes the number indicate it is a fraction?

I think my non economist like brain can cope with a quarter per cent drop. Ok, .25 per cent drop if you are of an intellectual nature and want to sound posh but for mine, I like a bit of vulgarity about my fractions. Common as muck is me.

6 comments:

  1. Those poor, poor banks; having to scrimp and save every penny for their penniless shareholders and to think they've been oh-so generous by giving, out of their own pockets, that .25% drop in rates.
    They'll get their just desserts...

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  2. It's all cream on the cake - or the bread and butter pudding for the justly deserted bankers. (Rhymes with ...)

    As a dyed in the wool and unborn again Christian, one of the few stories from the Hans the Christian Anderson book of fairy (no slight intended Shirl) tales I reckon should be short listed for the Booker Prize is that one about the turning over the card tables and the ouija boards of the money lenders.

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  3. Andrew,

    The percentage/fraction/rate doesn't matter. The way it works is simple. Rates go up, you're screwed. Rates go down and you'll be uttering curses at the mortgage advisor who (for a very large fee) just got you to sign up to a fixed rate mortgage. Regardless of the amount, you can rest assured all your money's heading in one direction only...

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  4. Brian, our mate Shirl doesn't give a toss as long as someone goes down, headed in the right direction and some one ends up screwed.


    Come to think of it he's just like you and me.

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  5. Damn...now my INGdirect interest rates will drop. Bastards. Can't they stop tinkering with the laws of greed and avarice.

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  6. Clearly there is a lot of love out there for the banks.

    If interest rates fall for young capitalists, so be it.

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