furtherandfaster

Bank of England reduce interest rates to -1%

Yup in future we pay the bank to save money with them. Why not? Could it happen? 

Only kidding guys. You'll be relieved to know that the lending rate is still in the black at 1%. But cheaper in America. But here's the rub. The reason we can't get out of this mess is because of loss of confidence all round. My question is this - how does reducing the interest rate increase our confidence? When the interest rate gets to zero it isn't going to get any lower. So what are they going to do then? Let's wait and see - they would have done better to have kept the interest where it was or even start to raise the rate. If you want to create confidence then behave as if you have half an idea that you know what you are doing. I don't believe our national bank does.

Marketing is what you do (not just what you say)

Impressive piece of marketing - within 24 hours of the unexpected 1.5% rate cut First Direct took the trouble to tell me that they have cut the interest rate on savings. Too bad they haven't seen fit to cut their mortgage rate by a comparable amount. In fact they haven't cut it at all. But this is 'marketing' a department which issues communications. Talk is cheap. Keeping the savings from an interest rate cut while keeping loan rates high looks like self interested behaviour. Which of course it is. Even if they are take my calls 24 hours a day. I would have told them this in person. But they don't seem to be answering. Banking is a miserable business these days - they really don't know what is going to hit them next. And they can't get off the back foot. The whole point about marketing is coming off the front foot - initiating and creating the marketing conditions you want. To date financial services hasn't got the foggiest how to get started.

RBS balloon goes up

Wed 15/10/2008 11:31 15102008136

Quite what RBS expected to achieve with the marquee, battle bus and hot air balloon isn't clear. I thought they were on the verge of bankruptcy? Surely better to keep quiet and avoid hot air?  Don't you love the marketing business - Make WHAT happen exactly?