Will interest rates go below 1%?

LandlordLee

I think that if the BOE fail to stimulate the Economy like they are trying to do (with the 1.5% rate cut) then inflation will fall below the 2% targed.. It is predicted to fall to under 1% by the end of 2009. Oil is falling which brings other prices down.

The BOE have seen something to alert them so much that they are trying to get infront of the curve.

In December they will cut rates again by 1/2 or a full 1%.

wharty

I hope so.

feisty1

and pigs will fly!

Scousebird_2

feisty1 wrote: »

and pigs will fly!

Ditto, sadly!!

LandlordLee

feisty1

I really do not think people understand how big this global crisis is. Just actually think about what has gone on - The world biggest banks going bust, governments bailing them out, interest rates at 3%, oil dropping to around $50 a barrel...

If i had posted that in the summer of 2007, i would think that people would offer me 1,000,000 - 1 on it. So perhaps that little piggy will be off the ground learing to fly.

LandlordLee

http://www.thisismoney.co.uk/news/article.html?in_article_id=456215&in_page_id=2&ct=5

This is a very good read on this subject..

Antispam

I think they will go down to at least 2%

LandlordLee

looks like they will go below 1% now

Peelerfart

Ouch !!! Just been hit by a flying pig

Kez100

LandlordLee wrote: »

feisty1

I really do not think people understand how big this global crisis is. Just actually think about what has gone on - The world biggest banks going bust, governments bailing them out, interest rates at 3%, oil dropping to around $50 a barrel...

If i had posted that in the summer of 2007, i would think that people would offer me 1,000,000 - 1 on it. So perhaps that little piggy will be off the ground learing to fly.

Oil was about $50 a barrel in January 2007!

It was the madness peak (speculators?) that makes it now look so cheap.

They are only at a 3 1/2 year low.

The other stuff you'd have got good odds on.

Radiantsoul

LandlordLee wrote: »

I think that if the BOE fail to stimulate the Economy like they are trying to do (with the 1.5% rate cut) then inflation will fall below the 2% targed.. It is predicted to fall to under 1% by the end of 2009. Oil is falling which brings other prices down.

The BOE have seen something to alert them so much that they are trying to get infront of the curve.

In December they will cut rates again by 1/2 or a full 1%.

I think they will cut to by 0.5% in January and the same in February.
I am not sure they will go below 1% though. It strikes me that zero interest rates are likely to create as many problems as they solve.