Interest Rates

aardvaak

We keep hearing in the media interest rates are about to start going up but has anyone got any idea when this will eventually start?

free4440273

they won't raise rates today unfortunately. they should, but they won't. an incremental increase of, say, .25 per cent last month and today would bring some much needed common sense (and sanity) into the economic equation. for me, what this means is more substantial incremental increases of, say, .50 per cent by the end of the year, which is bad news for everyone. the BoE only have themselves to blame really...
edit: just logged on to the BoE site. this is one instance where i am happy to be 'wrong'. although, for the BoE, perhaps a case of literally too little, too late?

mi-key

#2 - bet you wish you hadnt posted that now ;0) ( or listened to the news at 12:03 PM....

DavB93

Will this cause lenders to increase there rates too?

grade15

lenders will increase straight away and delay the interest on ur savings account or very little!!

aardvaak

This is good news - a start in the right direction

saver_sam

well ftse does not seem to like it at the mo. I looked around the announcement time and it was down 31 pts and now it is down 56 pts.

aardvaak

grade15 wrote:

lenders will increase straight away and delay the interest on ur savings account or very little!!

I think you are right but at least it's a start and in the right direction.

Joe_Bloggs

This won't affect those with existing fixed interest rate mortgages. This won't cure the main reason for inflation. Many say an enormous increase in fossil fuel prices driven up by vested interests. It won't affect those paying 20% plus on credit cards allready or those on 0% deals. It wont affect those who claim back interest costs in tax. It won't affect me, that much, as I have budgeted for this eventuality. It will cure speculation on whether the rate should go up. Perhaps the ECB pushed the hand of the BofE. So much for BofE independence.
The rate hike will not cure anything directly.
J_B.

movieman

This won't affect those with existing fixed interest rate mortgages.

I've never understood the idea of short-term fixed rates on mortgages. Full-duration fixed rates in America, yes, you know exactly what your payments will be from now until you finish the mortgage and can plan accordingly, but not two or five years.

If you're expecting interest rates to go down, then you'll lose money. If you expect interest rates to go up, then you probably shouldn't be buying a house anyway, because prices are probably going to go down.

This won't cure the main reason for inflation.

The main reason for inflation is a massive glut of cheap credit on a global scale: any interest rate rise anywhere in the world helps with that. It will also support the value of the pound, which will reduce the local price of any commodity like oil that's priced in dollars.

A few months ago I'd expected a rate rise in July or August, but with a unanimous hold vote last month I'd expected a hold today. I'm actually shocked that they raised after that, their predictions for future inflation must be looking pretty scary.

DavB93

Well it's not good for me, am just looking for a fixed rate mortage now so the rates will go up. Great..