When will interest rates start to rise again.....

amistupid

When there's nothing on the horizon you've got nothing left to lose

thor

The truth is nobody can predict with any accuracy which way the rates will go. You might as well put your money on the favourite at the 2.30 at Epsom. It is a gamble either way as far as I'm concerned if you try to play the markets. The is no fundamental reason that rates will EVER return to previous levels. Past history means nothing.

gozomark

thor wrote: »

The is no fundamental reason that rates will EVER return to previous levels. quote]

To me the most likely scenario is that in 10 years time all of this will seem like the 1987 crash, and the UK econmy will be back to a 2% inflation, 2% GDP growth long term trend, with base rate averaging 4-5% over an economic cycle, ranging between 3% and 6%. In the meantime we are likely to go through an exaggerated slowdown/recession, followed by an exaggerated recovery, and rates could well go up to 8% to reduce inflation before we end back at the sort of stability we've had for the last 10 plus yars

soulsaver

gozomark wrote: »

thor wrote: »

The is no fundamental reason that rates will EVER return to previous levels. quote]

To me the most likely scenario is that in 10 years time all of this will seem like the 1987 crash, and the UK econmy will be back to a 2% inflation, 2% GDP growth long term trend, with base rate averaging 4-5% over an economic cycle, ranging between 3% and 6%. In the meantime we are likely to go through an exaggerated slowdown/recession, followed by an exaggerated recovery, and rates could well go up to 8% to reduce inflation before we end back at the sort of stability we've had for the last 10 plus yars

I hope you're right. In the mean time there is a bit of good news;with US base rates at zero or thereabout, mortgage rates & savings rates are c4%, so maybe we can hope for similar?

shindigger

They will go up after the next election.
Which i think will be on June 5th.
Gordon knows most British people are only able to apply the headline interest rate to their lives rather than stacking up debt for future generations.
He also knows that most British people are only able to apply a falling currency to their holiday rates.

Gordon saw the damage high rates did to the tories, thats why he made the BoE "independent". Until there was an election to win anyway.

Whoever wins the next election, they will have the 5 year scope to take the right action instead of the politically expedient action.

By the way, did you know that the government are about to pass a law that makes it ok for bailiffs to enter your home without a warrant?

Please, anybody reading this, dont vote Labour at the next election.
These Stalinist mobsters must be STOPPED.

gozomark

The BoE sets interest rates, not Gordon Brown

Hungerdunger

shindigger wrote: »

These Stalinist mobsters

Slight exaggeration there, I think!