Guess the rate date challenge...

financialbliss

Quick browse of a few financial sites while on lunch and I spot this from This is Money:

http://www.thisismoney.co.uk/money/news/article-2010795/Bank-England-set-rates-hold-Thursday-economists-expect-rise-2012.html

We're due a rate decision at noon on Thursday 7th July and while I'm no expert, I'm very much suspecting that a hold is on the cards, since the above article is now pointing to 2012 before an increase.

The acticle actually suggests the "second quarter of 2012", ie April to June. Could have another 9-12 months at 0.5%

FB.

wynnvegas

Hi FB,

Don't write yourself off yet! If there's a surprise quarter point bump this week, you can claim to be an expert on base rates until the end of time! Still, it is rubbish for the savers of the world. I'm still on the side of low interest rates and hope that their continued existence will enable a lot more of your MTi3-T2 guys to bump their mortgage during the challenge!

Cheers,

Billy

adwat

I'm with FB on this - 12 more months with no rise in rates - July 2012 at the earliest, check this out :

http://www.independent.co.uk/news/business/news/bank-may-start-printing-money-again-as-fears-for-economy-spread-2306284.html

So we'll have another 12 months to take advantage of low rates, making hay while the sun shines comes to mind.

financialbliss

This is Money seem confident enough that they posted an article earlier this evening (Wednesday) strongly suggesting interest rates are to be held tomorrow:

http://www.thisismoney.co.uk/money/news/article-2011844/BoE-rate-decision-No-sight-economy-struggles-register-growth.html

We can only wait to see what tomorrow brings...

FB.

financialbliss

Well, if you haven't read elsewhere, the base rate was again held at 0.5% today:

BBC:
http://www.bbc.co.uk/news/business-14062367

TiM:
http://www.thisismoney.co.uk/money/news/article-2012193/Interest-rate-decition-Bank-England-holds-amid-calls-tackle-inflation.html

That knocks me out of the challenge, but what the hell, I'm now enjoying a 2.5% mortgage rate care of Nationwide, so it's not too bad.

FB.

cha97michelle

I've been on that rate for 2 years now, and it certainly helps to pay off quicker. Now we are at £25k remaining there is not much point fixing anywhere either as it would not make much sense as the fees wouldn't save anything.

Another year we reckon? Well, let's just keep overpaying then, and enjoying it.

gallygirl

financialbliss wrote: »

Well, if you haven't read elsewhere, the base rate was again held at 0.5% today:

BBC:
http://www.bbc.co.uk/news/business-14062367

TiM:
http://www.thisismoney.co.uk/money/news/article-2012193/Interest-rate-decition-Bank-England-holds-amid-calls-tackle-inflation.html

That knocks me out of the challenge, but what the hell, I'm now enjoying a 2.5% mortgage rate care of Nationwide, so it's not too bad.

FB.

:T:T:T Yup, that's one challenge we've all been happy to lose :T:T:T

unhappy_shopper

[STRIKE]26. unhappy_shopper: June 2011 - INCREASE : 0.25% to 0.75%[/STRIKE]

I am so glad to be knocked out of this challenge. I hope my predictions will not come true at least for another year :-)

I wouldn't have said this 5 years back when we paid only 10% deposit and had twice that amount in fixed term deposits, which were earning higher than the mortgage interest rates. Recently we added onto our mortgage and are paying only 2.49% interest compared to the 5.55% we were paying 4 years back. How times change..........

financialbliss

Minutes from July meeting released today. In a BBC article:

http://www.bbc.co.uk/news/business-14214630

it reports there was a 7:2 in favour of holding rates.

FB.

financialbliss

Well, followers to this this should not need a heads up that we're going to get the August base rate decision at lunchtime tomorrow.

A quick look around in BBC business and this is money - browser tabs I have open at present paints a dismal picture:

BBC - pay freeze for 75% of workers:
http://www.bbc.co.uk/news/business-14386032

TiM - UK stock market plunges 2%:
http://www.thisismoney.co.uk/money/news/article-2021888/UK-stock-market-hits-month-low-global-investors-fret-US-economic-crisis.html

TiM - Rate rise would cost families £500 a year:
http://www.thisismoney.co.uk/news/article-2021781/Rate-rise-cost-families-500-year-economists-warn.html

and I'd be willing to place a strong 'No' for a rate rise tomorrow.

Should that be the case, we'll loose:

7. pencekeeper: August 2011 - INCREASE :0.5% to 1%
10. Nitramak62: August 2011 - INCREASE : 0.25% to 0.75%
17. mlz1413: August 2011 - INCREASE : 0.5% to 1%
29. uzubairu: August 2011 - INCREASE : 0.25% to 0.75%

and no sign of anyone new to take up the challenge.

No takers on a date guess?

Financial Bliss.