MSE news: Base rate held at 0.5%

chucky

Thrugelmir wrote: »

There have been occassions when rates have risen 1% a month quickly. I remember it clearly as it was the first year I had a mortgage, my mortgage rate from 10% to 14% :eek: , in 4 consecutive months. Even on a £25k loan it was a lot of money.

So when it happens it could be very quick.

The BOE will also step in if asset prices appear to be bubbling as well. I doubt if they will make the same mistake as recently.

yes it could be... but very unlikely to happen that quickly.
it would cause panic and mayhem in the equity and bond markets not to mention the pound.

moving from 10% to 14% is a 40% increase.
going from 0.5% to 4.5% is an 800% increase, so it's a bit different

my guess is that a move up to 5% over 12 months would be fair in 12/18 months time.

Snooze

chucky wrote: »

my guess is that a move up to 12% over 12 months would be fair in 12/18 months time.

:huh: :huh: :huh:

R

chucky

Snooze wrote: »

:huh: :huh: :huh:

R

that's not 10 months and not planned around an election.. it won't be a political decision... it will be for economic reasons...

Thrugelmir

chucky wrote: »

yes it could be... but very unlikely to happen that quickly.
it would cause panic and mayhem in the equity and bond markets not to mention the pound.

moving from 10% to 14% is a 40% increase.
going from 0.5% to 4.5% is an 800% increase, so it's a bit different

my guess is that a move up to 12% over 12 months would be fair in 12/18 months time.

The markets will pre empting rate rises. The major banks economists will be analysing the same data as the BOE. Advising clients well ahead of the event.

We really are in a period of uncertainty. Capital markets are international so events may be out of our (the UK's) hands.

mewbie_2

chucky wrote: »

my guess is that a move up to 12% over 12 months would be fair in 12/18 months time.

In two years time interest rates at 12%? Are you serious?

Snooze

mewbie wrote: »

In two years time interest rates at 12%? Are you serious?

Indeed.

Welcome to the 'bear' camp, chucky. :rotfl: I knew the pressure of trying to pretend you were a bull would break you eventually. :rotfl::rotfl:

You'll be predicting 70% falls in no time.

R :T :j

chucky

Snooze wrote: »

Indeed.

Welcome to the 'bear' camp, chucky. :rotfl: I knew the pressure of trying to pretend you were a bull would break you eventually. :rotfl::rotfl:

You'll be predicting 70% falls in no time.

R :T :j

:rotfl::rotfl::rotfl:should have been 5%
it's all this talk and 12 months and elections

Snooze

chucky wrote: »

:rotfl::rotfl::rotfl:should have been 5%
it's all this talk and 12 months and elections

I believe you. Thousands wouldn't, mind.

R