Interest rates to stay below 1% for 5 years?

Generali

dazzaofdagenham wrote: »

Everybofy has to think about there own situation and what benefits them.

For me its great...Paying .99% over the BOE base rate until end of term....So now paying £421.87 less than when my fixed term ended.

Yes i am paying extra off my mortgage which benefits me and my family.

However i do see the negative side in the people getting little or no interest on there life savings.....

Darren

I suspect you're missing his point Darren.

You can have low interest rates or a thriving economy but not both. How secure will your job (or anyone else's) be if the economy is at a standstill or worse for the next 5 years?

If your mortgage drops by a few hundred quid but your income by a grand or two then you're not doing so well.

Heyman_2

CloudCuckooLand wrote: »

http://www.capitaleconomics.com/rogerbootle/index.php

"Roger Bootle is one of the City of London’s best known economists, having worked in or around the financial markets since 1978. As well as being Managing Director of Capital Economics, he is also Economic Adviser to Deloitte..."





Suddenly with his Deloitte hat on, the guy is a genius...?




What's the opposite of 1% for 5 years...?



:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Ouch. Got you bang to rights there I think Hamish

movilogo

Glad I'm on a tracker mortgage

michaels

Hang on - who sets the inflation target and appoints the MPC members? - Oh that's right the Govt - so in what way are their actions 'independent'?

michaels

I mentioned this to Hamish last time he was selectively quoting predictions of lower unemployment than predicted and an extended period of low interest rates but I am not sure it goes in...

Generali wrote: »

I suspect you're missing his point Darren.

You can have low interest rates or a thriving economy but not both. How secure will your job (or anyone else's) be if the economy is at a standstill or worse for the next 5 years?

If your mortgage drops by a few hundred quid but your income by a grand or two then you're not doing so well.

HAMISH_MCTAVISH

Heyman wrote: »

Ouch. Got you bang to rights there I think Hamish

:rotfl:

Yes, I can't really argue that one.:p

Ah well.....

nollag2006

Ever gracious in defeat Hamish - well done.

It seems that Deloittes have gone out of the way to recruit more and more interesting characters in recent times:
http://www.dailymail.co.uk/news/article-1235129/Deloitte-girl-quits-sending-email-asking-colleagues-vote-offices-attractive-men.html

nollag2006

Mozette wrote: »

Mine does; no more than 2% above. At the moment, very nice indeed.

I feel for those with savings though.

Same for mine - I've got a nice little low cost BOE tracker, and there are plenty more coming on the market every day

:T

kriss_boy

Mozette wrote: »

Mine does; no more than 2% above. At the moment, very nice indeed.

I feel for those with savings though.

Mine is .75% above the BoE with LLoyds TSB.

Do they have to stick to that or is it possible some lenders may refuse to continue to base it on the BoE int. rate if it remains so low for the suggested 5 years.

My girlfriend and I could virtually pay our entire mortgage off in 5 if it stays as low as it is!

bungle4x4

personally, i can't wait for post recession inflation. 10 percent will do me very nicely thanks.