BOE Base Rate to be at 0.5% until end of Q2 2010

inspector_monkfish

13:10 01Jul09 (GBP) Poll shows median expectation of GBP150bn APF

(GBP) A Reuters poll shows the median expectation for UK BoE Bank Rate is 0.5% right until end-Q2 2010. 44 out of 55 respondents say the BoE's QE programme will be effective, whilst the median expectation remains for the BoE to use up the full GBP150bn available to it for asset purchases.

IveSeenTheLight

So , expectations are for the BoE to remain still for another full year.

Sounds good for my tracker mortgage, means I'll be able to pay down an extra £6k from that mortgage without making any extra payments.

As I've maintained the same payments from when the BoE was 5.75%, I guess that it's going to be at least two full years of extra payments as a result of low IR's

wolvoman

inspector_monkfish wrote: »

13:10 01Jul09 (GBP) Poll shows median expectation of GBP150bn APF

(GBP) A Reuters poll shows the median expectation for UK BoE Bank Rate is 0.5% right until end-Q2 2010. 44 out of 55 respondents say the BoE's QE programme will be effective, whilst the median expectation remains for the BoE to use up the full GBP150bn available to it for asset purchases.

Wow.
I can continue to pay a £200 mortgage on a place that would cost me £1600 in rent. Nice.

inspector_monkfish

dont get too carried away chaps, its just a poll !!

Cannon_Fodder

Can you change the title to include "2010"...

I thought, "so what, its end of Q2 now...."!

As for the prediction, well, irrespective of QE and all that side of things, I hardly think Gordon will allow the BoE MPC to screw up the only thing that is keeping his head above water until the election...if they want their Knighthoods.

Really2

If that happens that will be 14% of my mortgage paid off since August 08.

ad9898_3

Really2 wrote: »

If that happens that will be 14% of my mortgage paid off since August 08.

Good news, though I have saved 20% off a mortgage without making any payments at all.;)

inspector_monkfish

Cannon_Fodder wrote: »

Can you change the title to include "2010"...

I thought, "so what, its end of Q2 now...."!

As for the prediction, well, irrespective of QE and all that side of things, I hardly think Gordon will allow the BoE MPC to screw up the only thing that is keeping his head above water until the election...if they want their Knighthoods.

ah, sorry - dont think i can change it now

Really2

ad9898 wrote: »

Good news, though I have saved 20% off a mortgage without making any payments at all.;)

Good, My rent for those two years is only £3360

I am being a good boy, you all said we need to get the debt paid back.:)

We are all winners

Cannon_Fodder

inspector_monkfish wrote: »

ah, sorry - dont think i can change it now

Edit, then go Advanced...

lemonjelly

Wow. That's a long time. Surely there are too many variables at work to allow rates to be at 0.5 for this long? I appreciate Japan has had low rates for quite some time, however I can't help but wonder what if inflation increases - even if this is a gradual increase?

I also think it could be potentially bad for the economy. We had some almost knee jerk rapid reductions in the rate, we don't want them too low for too long surely, equally we wouldn't want to have to bump them back up too quickly either? I'd have assumed a smooth economy would behave more evolutionary?