Interest rates to stay low until at least end 2010

inspector_monkfish

from the Daily Express.....

MILLIONS of home buyers and owners can look forward to record low interest rates until at least the end of next year, experts predicted yesterday.


The Bank of England will be forced to keep them at 0.5 per cent throughout 2010 to balance low inflation and counter expected tax rises, say economists.

http://www.express.co.uk/posts/view/125806/Low-interest-rates-to-stay-

mruddy

hope this is true as we have just took a tracker mortgage, theres no tie in though so as soon as rates go up we will be going for a fixed rate.

Teterow

Same here - I could really do with a "financial" breather for a while.
I am sitting on Bank of Ireland (ex Bristol & West) SVR of 2.99%.
All the money that I am saving from my mortage being reduced (due to interest rate cuts), will be in put into a savings account just in case.

northerner79

If only we could believe the Daily Express Crystal Ball gazer!!

inspector_monkfish

northerner79 wrote: »

If only we could believe the Daily Express Crystal Ball gazer!!

don't think they will be too far wrong

dazzaofdagenham

suits me...i'm on a BOE tracker at base rate + 1.99%

Just bring down the credit card interest rates and ill be happy

luckyfool

and then another expert says something different. Who to believe!

"Interest rates could rise next year

Monday 7th September 2009

An economist at a leading City fund manager says interest rates could rise sharply next year.

In a blog post entitled “Could UK rates rise early in 2010?” Simon Ward of Henderson New Star said the Bank of England’s projections for inflation in two years’ time could be at the top end of their historic range at 2.5%.

This high level of expected inflation implies that the bank might have to raise rates to bring price rises back down towards the target of 2%.

“An eventual withdrawal of monetary stimulus is likely to take the form of a rise in bank rate rather than a reversal of quantitative easing,” he said. “Given the historically low starting level (of interest rates), rises in bank rate, when they begin, could be larger than in the initial stages of prior cycles.”

If Ward is right, borrowers on tracker or variable rate mortgages would see a large rise in their mortgage repayments."

link

inspector_monkfish

luckyfool wrote: »

and then another expert says something different. Who to believe!

"Interest rates could rise next year

Monday 7th September 2009

An economist at a leading City fund manager says interest rates could rise sharply next year.

In a blog post entitled “Could UK rates rise early in 2010?” Simon Ward of Henderson New Star said the Bank of England’s projections for inflation in two years’ time could be at the top end of their historic range at 2.5%.

This high level of expected inflation implies that the bank might have to raise rates to bring price rises back down towards the target of 2%.

“An eventual withdrawal of monetary stimulus is likely to take the form of a rise in bank rate rather than a reversal of quantitative easing,” he said. “Given the historically low starting level (of interest rates), rises in bank rate, when they begin, could be larger than in the initial stages of prior cycles.”

If Ward is right, borrowers on tracker or variable rate mortgages would see a large rise in their mortgage repayments."

link

think the fund manager chap could be talking his own book a little....:cool:

luckyfool

I'm sure he is... aren't they all? Anyway, it's crystal ball stuff, nobody knows whats going to happen with rates.

inspector_monkfish

luckyfool wrote: »

I'm sure he is... aren't they all? Anyway, it's crystal ball stuff, nobody knows whats going to happen with rates.

not even Jesus?

luckyfool

Dunno about that, maybe Derren Brown? Could give us a wee interest rate prediction before he tells us the lottery numbers.