Bank of England rate expectations

samsuka

A Reuters survey of economists has just been published and expects rates to be cut by 50 basis points to 1% next week, and rates to be 0.5% at the end of 2009.

LIBOR is also coming down, as are Swap rates, and with the banks capital requirement eased by the government recently, we should start seeing much better mortgage deals going into the Summer (barring any other surprises), especially if the house market starts to bottom out as some suggest.

So anyone on a SVR or coming to the end of a deal, hold out for a bit. Rates won't be going up till 2010 at the earliest, so if you can hold out re-mortgaging, my advice would certainly be to do so.

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carlos700

i no nobody really sure for def what will happen and i keep hearing people saying on here that rates will go up by middle of this year but i think your right theres no way rates will start to go up again in 2009 who knows probely not even in 2010 either its going to take much longer than 12 months for everything to recover .I think the recession has only just started

morg_monster

I really hope you're right Sam... I really want to see some better mortgage deals (not just for remortgagors, I'm a selfish wannabe FTB!). LIBOR has stalled over the past week or so however. Oh well at least it's not going up for now!