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Interest Rates in Two Years? Any Guesses?

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  • Hope for the best, plan for the absolute worst.


    That depends on whether you are a borrower or a saver
    Not Again
  • LeeSouthEast
    LeeSouthEast Posts: 3,822 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    That depends on whether you are a borrower or a saver

    Well, really it applies to both equally! :D
    Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
    Do something amazing. GIVE BLOOD.
  • harryhound
    harryhound Posts: 2,662 Forumite
    All these lists of future interest rates are totally meaningless without the equivalent inflation rate alongside.
    Historically, if you are getting more than 2% in REAL terms you are doing well.
    At the moment the World's investment return in REAL terms (measured in goods and services available to an ever increasing population) is falling at (say) 5 to 10%. Do you think we in UK Plc have a unique edge on the rest of the 6.5 billion people that will enable us to carry on getting a bigger and bigger share?
    If you do, let me know - I need cheering up at this time of year.
  • thor
    thor Posts: 5,505 Forumite
    Part of the Furniture 1,000 Posts
    Like shares nobody will have the foggiest where interest rates will be in the future. The consensus appears to be that they will be higher in a couple of years due to their cyclical nature but didn't rates hit rock bottom in Japan in the 80s? I don't think they have still recovered.
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