Force up interest rates

24

Comments

  • melbury
    melbury Posts: 13,251 Forumite
    Name Dropper First Anniversary First Post I've been Money Tipped!
    Surely they will start climbing soon, won't they? Have been waiting for the past few years for a bit of an increase, which is why I have only deposited in one year fixed rate bonds:(
    Stopped smoking 27/12/2007, but could start again at any time :eek:

  • badger09
    badger09 Posts: 11,201 Forumite
    First Post First Anniversary Name Dropper
    melbury wrote: »
    Surely they will start climbing soon, won't they? Have been waiting for the past few years for a bit of an increase, which is why I have only deposited in one year fixed rate bonds:(

    Not until the supply of cheap(er) money available to them from BOE dries up :(
  • newOAP
    newOAP Posts: 3 Newbie
    Thanks everyone - you've convinced me that there is no future in withdrawing my savings to pump up the mattress; I will just accept the low rates and put up and shut up for now ! :(
  • rb10
    rb10 Posts: 6,334 Forumite
    melbury wrote: »
    Surely they will start climbing soon, won't they? Have been waiting for the past few years for a bit of an increase, which is why I have only deposited in one year fixed rate bonds:(

    Other than ISA rates increasing very slightly during next year's ISA season, there are no expectations for rates to increase soon.

    I wouldn't be surprised if we didn't see further rate cuts in April/May as banks compete for Spring mortgages by reducing rates there, and balancing this need to retain margins by reducing savings rates accordingly.
  • jimjames
    jimjames Posts: 17,596 Forumite
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    melbury wrote: »
    Surely they will start climbing soon, won't they? Have been waiting for the past few years for a bit of an increase, which is why I have only deposited in one year fixed rate bonds:(

    I went to a conference last week with a respected economist speaking. In his view it is unlikely that rates will rise before 2015 so waiting for an increase isnt likely to be productive.
    newOAP wrote: »
    Thanks everyone - you've convinced me that there is no future in withdrawing my savings to pump up the mattress; I will just accept the low rates and put up and shut up for now ! :(

    Or find an alternative that gives the level of return you are looking for. I'd think very few people need to be 100% in cash.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • nilrem_2
    nilrem_2 Posts: 2,188 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    jimjames wrote: »
    I went to a conference last week with a respected economist speaking. In his view it is unlikely that rates will rise before 2015 so waiting for an increase isnt likely to be productive.

    Respected economists have no more idea of how or when rates will rise than most people who post here. Unless this particular economist happens to have a 100% accurate crystal ball! :)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    nilrem wrote: »
    Respected economists have no more idea of how or when rates will rise than most people who post here. Unless this particular economist happens to have a 100% accurate crystal ball! :)

    The issues faced by Japan in getting to grips with a credit boom which resulted in inflated asset prices. Are a good example of the challenges ahead.
  • atush
    atush Posts: 18,726 Forumite
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    Why not start a war?


    That might do ti for you
  • jimjames
    jimjames Posts: 17,596 Forumite
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    nilrem wrote: »
    Respected economists have no more idea of how or when rates will rise than most people who post here. Unless this particular economist happens to have a 100% accurate crystal ball! :)

    That may be true but it seems a fairly good bet that with the economy in the current state and lending under pressure that rates are not likely to rise quickly or soon.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Blackdog
    Blackdog Posts: 459 Forumite
    Savings interest rates are only likely to go down further over the next few months. Banks are accessing cheap BOE/Government money so have no need to pay savers decent interest rates. The big question is when will we see the interest rates start to rise again - like everyone else I have no way of knowing but I suspect it will be at least another year before a rise.
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