Interest Rate

1984ReturnsForReal_2

0.5% or thereabouts until after X-Mas. Probably March or April.

High Street banking is in too deep to see significant rises over the short term.

Graham_Devon

I'm torn on this one.

I don't think rates will go up before the election, not by any great measure anyway. Doubt we will see a move from 0.5% until after christmas.

On the other hand, house prices are starting to rise, and last months figures were a pretty hefty rise. Petrol is rising. Other commodities are rising and apparently we are all spending more.

Which leads to inflation. So I'm going to sit on the fence on this one I reckon. I can't see personally any rises before christmas, and I reckon politically, they will hold off increasing rates until after an election, as a lot of people will feal wealthier which is good news for labour.

I just don't know for how long they can hold off keeping rates this low. Could be a long time, but then I do feel that we could have problems with inflation. We had them due to petrol last time round, and I noticed prices are now 106.9 around me, not actually that far off what stoked inflation last time.

ruggedtoast

If the BOE actually believed house prices were going up they may well raise rates Graham.

I think you can pretty much bank on a hold for some time.

Dan:_4

hold hopefully.

purch

The market prices rates realistically

Yes it does.

What has that got to do with credit cards of mortgages ?

Neither has ever been priced off the market.

Really2

ruggedtoast wrote: »

If the BOE actually believed house prices were going up they may well raise rates Graham.

I think you can pretty much bank on a hold for some time.

HPI is not part of CPI so it would have no effect.

If the BOE inflation target was based on RPI or RPIX maybe.

Graham_Devon

Really2 wrote: »

HPI is not part of CPI so it would have no effect.

If the BOE inflation target was based on RPI or RPIX maybe.

To suggest they do not look at both measures to show a trend is absolutely insane. Yes, it's based on the CPI in principle, but they will be looking across the board at stuff. No point in having rampaging inflation and saying "nah uh, it don't show on the CPI figures, we shall do nerrrrrr-thing".

Really2

Graham_Devon wrote: »

To suggest they do not look at both measures to show a trend is absolutely insane. Yes, it's based on the CPI in principle, but they will be looking across the board at stuff. No point in having rampaging inflation and saying "nah uh, it don't show on the CPI figures, we shall do nerrrrrr-thing".

Explain the last boom and the IR rates during the boom please.:rolleyes:

You don't half like making something out of nothing to prove yourself wrong. Target inflation is based ON CPI only.

http://www.bankofengland.co.uk/
Check out inflation.

inspector_monkfish

LIBORs continue to trickle a point lower everyday

Graham_Devon

Really2 wrote: »

Explain the last boom and the IR rates during the boom please.:rolleyes:

You don't half like making something out of nothing to prove yourself wrong. Target inflation is based ON CPI only.

http://www.bankofengland.co.uk/
Check out inflation.

And you don't half like taking something completely out of context.

Go on, moan that I'm now abusing you. I got you a special pack of tissues ready.

The basis of what I was saying is they will not ONLY look at CPI as an indicator fo rthe whole of the economy and run everything based on one measurement. It would be absolutely insane to suggest that.

I really wish you would stop taking everything said so completely out of context so that I have to point out what I'm saying to you. Whether it be a joke you get all upset about as you don't get humour, or something like the above where you get all uppety. Life ont his board would be so much easier.