Interest Rates Up or Down/Static

andyjwill

Really just asking for opinions if that's OK.

Contemplating fixed rate savings for 1 or 2 years. Does anyone have any idea where interest rates will go in this timeframe.

I have read infaltion make take off end 2009 but can interest rates afford to follow?

Many thanks for your help if this is not too stupid a post!

gozomark

base rate

0.5-1% end 2009
1-2% end 2010
3-4% end 2011

nicko33

some think it may be 0.5% for the next 12 months (or more)

Megalomaniac

If we went from 5% to 0.5% in 6 months, even if we started now increasing the base rate at 0.25% a month (which is reasonable, but unrealistic), it will take 18 months to get back to the 5% base rate. I would say fix for a couple of years @ 4% if you can find somewhere, or fix at 3% for a year.

I have a suspicion that as the base rate has been held, it means all banks can get a restbite and drop their rates to catch up with the previous drops (i.e. still expect to see variable rates cut by 0.5% on today's figures).