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Interest rates to rise - Mervyn King

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Comments

  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    Not a problem for me - with an offset mortage, I pay interest on only a small percentage of my actual mortage amount.
    "You were only supposed to blow the bl**dy doors off!!"
  • doire_2
    doire_2 Posts: 2,280 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    petebates26 wrote: »
    http://www.thisismoney.co.uk/news/article.html?in_article_id=506411&in_page_id=2&ct=5


    2% by next year. Thats a start.
  • Blacklight
    Blacklight Posts: 1,565 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 17 June 2010 at 9:52AM
    doire wrote: »
    2% by next year. Thats a start.

    You mean by 1st Jan 2012, that's what the article says.
    Only 30% of economists expect a rate hike by year-end, well down from 55% forecast in the previous month's poll (2 June).

    Median forecasts from the poll suggest the bank rate would be raised in the first quarter of next year (Jan to March 2011) to 0.75%, then to 1.0% by June and would finish the year at 2.0%.

    Good news for anyone borrowing.
  • doire_2
    doire_2 Posts: 2,280 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Blacklight wrote: »
    You mean by 1st Jan 2012, that's what the article says.

    Still beats the bulls blabbering that IR would stay low for the next 5 years ;)
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    petebates26 wrote: »
    http://www.thisismoney.co.uk/news/article.html?in_article_id=506411&in_page_id=2&ct=5

    What is point of this post or indeed that article? it doesn't actually mean anything.
    Mr King said: 'There will come a time when our task will be to manage the exit from such an abnormal degree of monetary stimulus.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Blacklight
    Blacklight Posts: 1,565 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    doire wrote: »
    Still beats the bulls blabbering that IR would stay low for the next 5 years ;)

    a) no it doesn't because 2% is low, not high.

    b) nobody said that, you just made it up.
  • Turnbull2000
    Turnbull2000 Posts: 1,807 Forumite
    edited 17 June 2010 at 10:09AM
    doire wrote: »
    Still beats the bulls blabbering that IR would stay low for the next 5 years ;)

    The bulls are right. Interest rates could quadruple, yet they'd still only be at 2%. Rates of more than 4% or a long, long way off IMO. Asset prices are considered too important, and will not be jeopardised by raising rates near or above pre-crunch levels. I think it’s fair to assume that house prices may soon adjust upwards based on sub 3% rates.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    mmm but does not say when. So yes they will go up, and down again in the future. :)

    But looks like it is only going to be 2% by the end of 2011. Still not earth shatteringly high really.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    doire wrote: »
    Still beats the bulls blabbering that IR would stay low for the next 5 years ;)
    2% is low you drunkard
  • sarkin1
    sarkin1 Posts: 283 Forumite
    Part of the Furniture Combo Breaker
    Turnbull2000 wrote: »
    The bulls are right. Interest rates could quadruple, yet they'd still only be at 2%. Rates of more than 4% or a long, long way off IMO.

    And what about all the people late to the party who are now on base + 2 or BTL on Base + 3.5%

    TMW are offering 2.99% on BTL after 1 year it goes to 4.99%, these people will be looking down the barrel of 6.99%

    Their monthly payment is going to rocket
    :cool:
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