Get ready for rates to rocket

penguine

Patrick Collinson of the Guardian on why interest rates will soon start going up.

Some stockmarket pundits are excitedly talking about a V-shaped recovery, and a bounceback in growth that could be even faster than Alistair Darling predicted.

Maybe so. But I'd rather listen to a fund manager whose fund has been through several major recessions since its launch in 1969 and has still given investors a decent return.

There's almost a hint of bitterness when Dobell talks about how Britain's policymakers have squandered our industrial and commercial heritage.

He believes we will have to accept a protracted decline in our living standards, as we rebalance the economy after the excesses of the last decade. We have all been over-consuming, he says.

Whether the shape of the recovery is V, W or VL, it's now evident that interest rates are on an upward trajectory. Some pretty extraordinary moves in US Treasury yields in recent weeks are signalling an almost inevitable rise in interest rates across the globe.

My own mortgage doesn't come out of its lock-in for another year. But if I could act now, I would be pegging it for five years at the sub-5% fixes on offer from the likes of HSBC. I'd be very surprised if they are still around in a few years' time.

roddydogs

Lets hope so for us savers sake

bubblesmoney

hoping i pay off my mortgage before it shoots up. anyway if it shoots up like crazy then there will be more things to worry about than paying the mortgage :eek:

amcluesent

While Clown and his girls' blouses in the cabinet have been faffing about, you can be sure that the IMF's dour accountants have been drawing up an decade-long austerity plan to recover Britain from Clown's tax'n'bungle years. IRs will certainly be going up, to get a grip on the inflation that the socialists have, as always, introduced to diminish the ballooning public debt.

Dan:_4

Oh dear. We really are scrapping the bottom to find 'doom' news these days.

Interest rates will not shoot up rapidy - this will undo the work achieved so far, so nice steady increases starting sometime next year would be my bet. And mervs come to that.

whathavewedone

Well when you have interest rates at 0.5% it doesn't take a brilliant mind to work out that they are going to go up rather than down at some point.

The question is when and by how much. Nothing is going to happen before a general election anyway unless we have to go to the IMF.

Heyman_2

penguine wrote: »

Patrick Collinson of the Guardian on why interest rates will soon start going up.

Whether the shape of the recovery is V, W or VL, it's now evident that interest rates are on an upward trajectory.

What a genius this guy is - I wonder how much he gets paid for stating the bleeding obvious :rolleyes:

Of course interest rates are going up, they certainly can't go down can they?

I don't think my response would have been half as derisory if you hadn't entitled the thread 'Get ready for rates to rocket'

Heyman_2

LOL - whathavewedone, great minds within 3 minutes of each other

wymondham

The sooner they go up the better - the current rate is unrealistic and punishes those that are prudent and save.

ad44downey

When interest rates go up to a proper level is the time when the house price crash will really begin. What we've had so far is merely an appetiser.

mewbie_2

ad44downey wrote: »

What we've had so far is merely an appetiser.

Mmmm tasty. What's up Chucky - lost your appetite? :rotfl: