Interest Rates in Two Years? Any Guesses?

gozomark

Milarky wrote: »

Ah! the outlook for inflation 'in two years time' is always offically '2%' regardless of the actualitie

thats because interest rates are set at the level the BoE judges necessary to get inflation at 2% in two years time - if the outlook was different, interest rates would be at the wrong level

kingmonkey

Are interest rates inflating and does it take into account CGT?

gozomark

Are interest rates inflating ?

on RPI yes, due to housing component. On CPI, nothing direct

does it take into account CGT ?

capital gains tax ? - can't think how it would - what did you have in mind ?

shindigger

Milarky wrote: »

Ah! the outlook for inflation 'in two years time' is always offically '2%' regardless of the actualitie

:rotfl: :rotfl: :T

Robert_Sterling_3

Your guess is as good as mine if not better.

stevetodd

Can't see us being out of this mess in 2 years I think they will still be low, I think higher rates i.e 4-5% are about 4/5 years away

meunier

Thanks to all for your responses. It makes for interesting reading. I personally feel that interest rates could be on the higher end in two years - the 4-6% area- given that I feel that matters may well get taken out of the government's real control once the debt actually kicks in - and their margins get even smaller ...... The intakes of air will become entirely audible at that point. Cheers!

monaug5

Judging by the recession and other factors it will notexceed 4.5% in my opinion.

1984ReturnsForReal_2

1.00
1.00
1.00
0.75
0.75
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0.50 for 1 year

LeeSouthEast

Hope for the best, plan for the absolute worst.