People BEWARE 6% IR next year looking a real possibility

Woby_Tide

I'm guessing realwildone is a regular doom-monger from the last 3 years who burnt bridges so needs new pseudonyms to pretend they haven't spent the last 3 years or so making the same 'predictions' (and I use predictions loosely in ther terms of 'I predict it's going to rain...at some point...probably'

CB1979_2

Woby_Tide wrote:

'I predict it's going to rain...at some point...probably'

.....possibly

realwildone

I'm guessing realwildone is a regular doom-monger from the last 3 years who burnt bridges so needs new pseudonyms to pretend they haven't spent the last 3 years or so making the same 'predictions' (and I use predictions loosely in ther terms of 'I predict it's going to rain...at some point...probably'

If Im a doom monger what does that make all the people on here, like you, who taunt people to buy property they cannot afford.

The only advice you can give them is buy more, prices never go down, and IR won't go up.

Im a realist...you are in cukooland, probably not old enough to remember the last crash and not intelligent enough to look round and see what is now happening in the US.

Look around you..my advice now may save people heartache.Your advice will give them earache.

nelly_2

dont worry mate a lot of the 'it'll never go down' squad are mew'd up to the max and are petrified the market will crash again.

Zammo

I can see it hitting 6% too IF the BOE really is runnin tings.

Inflation is out of control, have you noticed even the price of food is starting to sky rocket?

:money:

meanmachine_2

Have you noticed the price of rocket (salad) has rocketed?

No seriously...when Tesco starts to put prices up, even with their stranglehold on the market, you can be sure that something's up.

CB1979_2

Zammo wrote:

I can see it hitting 6% too IF the BOE really is runnin tings.

Inflation is out of control, have you noticed even the price of food is starting to sky rocket?

:money:

possibly because of the price of fuel nowadays (I'm sure that's the excuse/reason they used)

don't really see the point of these threads though, for every ten people say it's gonna crash there's another ten saying it won't! lol

seven-day-weekend

Has everyone forgotten (or possibly didn't know about ) the 15% interest rate in the 70s/80s?

Just be aware that IRs CAN go up to this amount (whether they will or not remains to be seen) and don't borrow too much.

Zammo

It's also worthwhile pointing out that the long term average interest rates in this country are around 7%. We have been in an artificially low IR environment since 2000 when the US lowered them to 1% in order to stave off a recession. They've been gradually rising ever since and I expect them to return to their long term norm within the next year or so.

There are going to be a lot of people in some serious difficulties when there mortgage rates go up by even a percentage point.

mystic_trev

Really it's all going to hinge on CPI which looks like heading up to above 3% When that happens Merv has to write Gordon a letter (trying) to explain what's gone wrong! "Inflation is like toothpaste. Once it is out of the tube, it is hard to get it back in again."

I think we'll probably have one more IR hike this year, and one (maybe two) more early next year.