BofE Base Rate - October 2008

pickles110564

Interest rates need to rise by at least 2% and that way the crash and burn will come to its conclusion a damn sight quicker, come on lets get it over and pick up some bargains.

kennyboy66_2

Dan: wrote: »

Please explain your reason for an increase?

You won't find a reason

michaels

I'm going with 0.5% cut - I think the bit of inflation that has come from rising commodity prices is over and cutting intetrest rates will actually reduce the risk of a wage price spiral.

It is fun to guess at the moment - previously you could look at libor and get a very good idea where the market thought rates were going and given the banks policy of signalling to the market in advance this was normally correct - now the link between BoE and Libor has broken down so all bets are off.

My mortgage is a discount not a tracker - so far it has followed the BoE rate down this year but I suspect it won't happen this time

kennyboy66_2

I think its 80% likely that they will cut, probably by 0.25%.

Anyone who think that they will go up is deluded.

sabretoothtigger

Dan: wrote: »

They will def cut this month.

Thats what the market thinks, they have no choice, etc A definite cut and maybe half a percent.

I say thats crap for two reasons, inflation is not dropping off and due to the credit freeze still on going for at least another month, lowering rates will not help consumers, raise productivity or lower mortgage costs

Greatest threat right now is not high costs but erosion of capital worth

donnalove

pickles110564 wrote: »

Interest rates need to rise by at least 2% and that way the crash and burn will come to its conclusion a damn sight quicker, come on lets get it over and pick up some bargains.

u must be conservative

pick up bargains at the expense of someone who would lose there home cos of how much there mortgage would rise:mad:
Peeps are already struggling and i dont think its fair that homeowners should get hit hardest. There is no right or wrong way when the country is in such a state but hitting homeowners is not the answer and would stagnate things further.

opinions4u

They should be daring and go for a 1% cut.

People ain't going to rush out and splash the extra cash in their pockets as mortgage payments drop. They'll reduce debt which is exactly what the economy needs.

It won't affect the price of new mortgage deals as LIBOR is currently living a life of its own.

napoleon

pickles110564 wrote: »

Interest rates need to rise by at least 2% and that way the crash and burn will come to its conclusion a damn sight quicker, come on lets get it over and pick up some bargains.

I agree. Why isn't this option in the poll?

Dan:_4

napoleon wrote: »

I agree. Why isn't this option in the poll?

It is.

- Raise above 5%

ManAtHome

opinions4u wrote: »

People ain't going to rush out and splash the extra cash in their pockets as mortgage payments drop. They'll reduce debt which is exactly what the economy needs.

They didn't reduce debt when the rate was dropping from 5.75& to 5% - personal debt actually went up over 7%. May be "different this time", but BoE rates have had more effect on Sterling than consumer and business interest rates over the last year.