When will interest rates go up again?

penguine

chucky wrote: »

so if someone is doing ok due to the economic climate - it must mean that they are brainwashed. great argument :cool:

Low interest rates reward those in debt and penalise those who save. Doesn't seem very sensible (or sustainable).

Thrugelmir

Adebisi wrote: »

I hope they never go up. I am paying less than half the mortgage I was paying a year ago. Go Gordon, I love you!! Yay

Maybe you're overlooking the fact that Gordon has lost the "capital" value of your investment, which would take years to recover in terms of interest savings.

Really2

somabc wrote: »

What? Inflation is 3% and the banks target is 2% (CPI)

3% and falling especialy when energy falls that will take out 1.7%.
As I said BOE forcast infaltion to be below 2% until 2012 only repeating their words. If that is the case IR is not going to go up.

Dan:_4

penguine wrote: »

Low interest rates reward those in debt and penalise those who save. Doesn't seem very sensible (or sustainable).

I think there may a bit more to it then that.

Really2

penguine wrote: »

Low interest rates reward those in debt and penalise those who save. Doesn't seem very sensible (or sustainable).

Low interest rates are a signal of the economy and inflation. If inflation is lower than a savings rate you are a net winner.

When IR were 15% infaltion was 18% you would have been worse off! Or is it better to actualy see more money go in your bank but actualy be worse off?

Low interest rates only [STRIKE]reward[/STRIKE] help those in debt on tracker or variable rates.
If there is defaltion they are being punished.

Deflation = savers win
Do you think we should have deflation and high IR so you win both ways?

Thrugelmir

Really2 wrote: »

Low interest rates are a signal of the economy and inflation. If inflation is lower than a savings rate you are a net winner.

When IR were 15% infaltion was 18% you would have been worse offer or is it better to actualy see more money go in your bank but actualy be worse off?

I still remember the year I received an 18.5% cost of living pay rise. Trouble was inflation was nearer 21%. So was still no nearer getting the salary multiple required (at the time 3 times joint income was the norm) to buy a property. :eek:

StevieJ

penguine wrote: »

Low interest rates reward those in debt and penalise those who save. Doesn't seem very sensible (or sustainable).

Why do people keep banging on about reward, they are not in the business of rewarding people, they are trying t avoid a long depression :eek:

Dan:_4

StevieJ wrote: »

Why do people keep banging on about reward, they are not in the business of rewarding people, they are trying t avoid a long depression :eek:

I know, it winds me up as well. Most people's debts are fixed loans and credit cards so interest rates will not mean nothing.

Really2

Dan: wrote: »

I know, it winds me up as well. Most people's debts are fixed loans and credit cards so interest rates will not mean nothing.

Add to that the reasons why they are low (recession, deflation fears, job losses, house prices falling)
I cant actualy see why anyone would think Low IR is a gift to debtors.

chucky

penguine wrote: »

Low interest rates reward those in debt and penalise those who save. Doesn't seem very sensible (or sustainable).

maybe not sensible - but it seems that you're looking at it from just your 'savers' angle which at the moment doesn't look the best investment vehicle.

if you're a saver did you complain that rates were higher?
or are you complaining now because it may not suit your personal choice.