We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Interest rate will rise!
Bloomberg
Posts: 665 Forumite
As anyone with money in the bank is fully aware the interest rates are paltry to say the least. I personally feel that once the rates do start to rise then they will move fast and high. I predict that the BOE base rate will be at least 5% by the end of next year. If we lose the AAA credit rating then we could be facing double digit interest rates. This is only my opinion and it would be interesting to know what other people reading this forum are predicting.
Money is a wise mans religion
0
Comments
-
As anyone with money in the bank is fully aware the interest rates are paltry to say the least. I personally feel that once the rates do start to rise then they will move fast and high. I predict that the BOE base rate will be at least 5% by the end of next year. If we lose the AAA credit rating then we could be facing double digit interest rates. This is only my opinion and it would be interesting to know what other people reading this forum are predicting.
This is probably something you should put up on the "debate..." board.
Why do you think they will rise? & why so quick?It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
lemonjelly wrote: »This is probably something you should put up on the "debate..." board.
Why do you think they will rise? & why so quick?
Inflation is starting to rise, this can only be made worse with rising fuel costs.Money is a wise mans religion0 -
Inflation is starting to rise, this can only be made worse with rising fuel costs
The type of inflation we are facing is 'price push' rather than 'demand pull'
The price of fuel is not rising due to increased demand from the UK market.
Raising interest rates, and choking off demand will not stop those types of inflationary pressures, but will tip the economy back into a recession.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Inflation is starting to rise, this can only be made worse with rising fuel costs.
The key for me is that wage inflation is still negligible, if not negative.
IMHO, I can only see continued low rates and possibly QE to continue over the next few years.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Inflation is starting to rise, this can only be made worse with rising fuel costs.
Ah. But unemployment is rising & will continue to do so.
There will be reductions in the public sector over the next few years.
Households will have less money. Disposable incomes will fall. his creates a risk of little/no inflation - there are even some who believe deflation is a risk.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Even if inflation were to rise it does not follow that base rates will automatically rise too. The economy is fragile and putting them up could tip us back into recession. After all it would both make investment more expensive and raise the value of the £ hitting exports.
The government and the B of E might feel that inflation was the lesser of two evils.
Needless to say inflation without interest rate rises would be bad news for savers.0 -
So you saying a hedge against inflation in the UK with the potential for good gains is investing in a solid company with large exports, large capital investment projects currently while the going is good?
BP a good bet?Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
Below are Av gross savings rates, and equivalent real rates after inflation(red) from 1976 to 2007 {courtest of LTSB} It appears that only from 82 to 89 did savers make any real money after inflation (blue) - So can we deduce anything from the state of the economy then to give is any indication as to what we might expect in the next few years
9.7 -5.4 9.3 -2.8 8.4 0.0 10.8 -6.5 13.3 -1.8 12.2 0.2
11.8 6.4 9.7 4.4 10.4 5.8 11.6 5.9 10.9 7.2 8.7 5.0 11.2 4.4 13.3 5.6
12.9 3.6 9.7 5.3 6.3 3.7 5.3 3.4 5.6 2.7 5.2 2.7 4.5 0.9 6.1 3.3 6.0 4.2 5.0 2.1 5.5 4.8 3.8 0.9 3.6 0.8 3.4 -0.1 4.3 2.1 4.1 1.9 4.4 0.0 5.2 1.20 -
The government and the B of E might feel that inflation was the lesser of two evils.
They also might think it's a good thing, to have our personal and state debts eaten away in real terms by inflation.0 -
You have just blown the gaff on the strategy of all three parties in dealing with the deficit. So much easier than cutting spending or raising taxes. God help savers, whoever wins on May 6th. :mad:They also might think it's a good thing, to have our personal and state debts eaten away in real terms by inflation.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards