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MSE News: Base rate held at 0.5%
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ThrowingStonesAtYou wrote: »Is it not more the case that we will be forced to raise rates rather than chose to raise them though? What other motivation is there ever for raising rates?
What is going to "force" rates higher?
With the level of debt the government has taken on, wouldn't they prefer rates to be lower to help their own repayments:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
low,
low,
low,
low
u know it makes sense.....Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
IveSeenTheLight wrote: »"With sustainable, significant recovery very far from guaranteed, any policy tightening still looks a long way off and we expect interest rates to stay down at 0.5% until at least late 2010. Indeed, the Bank of England could very well delay raising interest rates until 2011," said Howard Archer at Global Insight.
That 7 year fix I took out at 5.39% two months ago is starting to look less and less attractive when I read statements from financial 'experts' such as these.
Who knows though, even if he's right, it may shoot right up almost as quickly as it dropped when it eventually does rise again. Hopefully I won't end up too much out of pocket or may even break even in the long term!0 -
What is going to "force" rates higher?
Inability to sell Gilts at auction.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Inability to sell Gilts at auction.
Banks and Building Societies; Companies - Rights Issues; Governments bond sales.
All resulting in competition for liquid deposits.
Lloyd's £21 billion rights issue is going to result in a huge transfer of liquid funds out of other institutions.
The EU is already withdrawing QE. Banks are international, liquid funds are limited. Capital requirements for banks are being increased globally.
Australia has raised interest rates for 3 consecutive months now. And isn't even in recession.
The game is in full flow.0 -
This is the discussion thread for the following MSE News Story:
"The Bank of England today announced it is holding the Base Rate at 0.5% for the tenth consecutive month ..."Read the full story:
Base rate held at 0.5%
This is News?
Did anyone expect anything else, just before Xmas?0 -
That 7 year fix I took out at 5.39% two months ago is starting to look less and less attractive when I read statements from financial 'experts' such as these.
Who knows though, even if he's right, it may shoot right up almost as quickly as it dropped when it eventually does rise again. Hopefully I won't end up too much out of pocket or may even break even in the long term!
Your right it may shoot up, however with the level of debt taken on, the concencus seems to be the rates will be low (at 0.5%) for at least another year and when they do rise it will be slow rises as to not jeapordise the recovery
You have your fix which gives you security as you know what rate you will be paying. 5.39% is still a decent long term rate, however you've made you decision and it's not ideal to wish it rises for others sake. Whether it rises or stays the same, it will not change your payments:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
This is News?
Did anyone expect anything else, just before Xmas?
I did read one article that speculated if the BOE would be brave enough to respond to yesterdays budget annoucement. As Mr King is not in agreement with the Treasurys growth forecasts. Which of course the BOE uses in forecasting and setting interest rates. But decided it would be unlikely, which has been the case.
So although independent. The BOE is guided in its decisions.0 -
Thrugelmir wrote: »
Australia has raised interest rates for 3 consecutive months now. And isn't even in recession.
.
Is that not because of their inflation?
http://news.smh.com.au/breaking-news-business/consumer-inflation-expectations-up-mi-20091210-kl0z.html0 -
Is that not because of their inflation?
http://news.smh.com.au/breaking-news-business/consumer-inflation-expectations-up-mi-20091210-kl0z.html
and don't they also have a potential housing bubble ready to potentially burst?0
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