MSE News: Interest rates could hit 8%, says economist

FTB-FTW

astralbee wrote: »

I've been reading all the comments to this headline on various news sites this morning and so many people seem to enjoy being smug about the possibility of crippling rises

Don't they just? I have had it up to here (point at top of head) with it already, and think they are being very unfair. Like you, I am in a position of having been fairly "sensible"; not borrowed as much as we could have done, etc, yet we will be absolutely clobbered by repayment costs if this scenario happens. Not enough to lose our home or even by in danger of that, but enough to struggle.

I suspect it's first time buyers like myself that will be hardest hit, since we have more left to pay off and came in when rates felt so much more manageable that the psychological impact will be bigger. Particularly when plans to start a family are factored in, which is probably fairly common for people buying their first home.

I'd quite like to see some sensible commentary on this, tbh, of which there seems to be very little: both on how likely a scenario a rate hike is, and what precautions can be taken now to prevent it from causing problems further down the line.

JimmyTheWig

dunstonh wrote: »

Its not news. Its opinion and if MSE are going to repeat it then don't repeat it as if it is going to happen.

Personally I don't have a problem with the way it has been written.

If MSE reported "Interest rates could hit 8%" then that would be opinion not news.
But MSE has reported "Interest rates could hit 8%, says economist" which is news.

I'm assuming that the economist in question is notable enough (either personally or by his organisation) to make it news. Clearly "Interest rates could hit 8%, says bloke down pub" wouldn't be news.

marklee

Surely it wouldn't have been too much to ask to include a contradictory viewpoint in the article, rather than just reprinting excepts from a PX press release? If you look around in the news today, there's plenty of opposing commentary saying "this is rather unlikely".

I would want to know where PX got their funding for this study... I can imagine that the banks would quite like people to fear rampant inflation, and lock themselves into long-term mortgage deals at 5 / 6%.

dunstonh

JimmyTheWig wrote: »

Personally I don't have a problem with the way it has been written.

If MSE reported "Interest rates could hit 8%" then that would be opinion not news.
But MSE has reported "Interest rates could hit 8%, says economist" which is news.

I'm assuming that the economist in question is notable enough (either personally or by his organisation) to make it news. Clearly "Interest rates could hit 8%, says bloke down pub" wouldn't be news.

I dont really have an issue with the board posting opinions but its the lack of balance that I dont like. The one a few weeks back saying interest rates to remain low until 2014 occurred in the same weekend other articles said that interest rates could rise quite quickly. However, only the one article was referred to.

The same has happened this weekend with this article but with other economists or think tanks (etc) having a different view. Yet only this one was picked by MSE for posting.

At the end of the day, the board can choose what it wants to post and I respect that. Just as they put up with me giving my opinion but I just wish there was a balance on subjects where it is an opinion rather than fact.

JimmyTheWig

Reasonable point, dunstonh. I guess a summary of "notable economists' current thinking on interest rates" would have been more useful...

lisyloo

I think rate will stay low PRECISELY because it will cripple the economy if they go high.
I estimate 0.75% mid 2011. 1.5% end of 2011.

marshallka

dunstonh wrote: »

True.

However, the other thread was full of comments saying that use of the MSE NEWS tag when its just an opinion of one individual or think tank is not right. Its not news. Its opinion and if MSE are going to repeat it then don't repeat it as if it is going to happen. Semantics I know but we also know how many posters react to MSE articles and posts and believe them to be gospel. (remember the Icelandic banks)

Also, notice how the "opinion" on low interest rates was posted only in the savings and investments forum but the "opinion" on high interest rates was posted in the mortgage one. Scaremongering perhaps? focusing on the ones that would be worse off in each case.

As I have said before and others have said on this thread and the other, there is nothing wrong with reporting opinions but the truth is that no-one has a clue and the site should avoid joining in rumour, scaremongering and hype but remain focused on fact and moneysaving. If it wants to post rumours and hype then at least do so under a different title and not NEWS.

Well said dunstonh.

karatedragon

The sooner the better. Need a bosst to my savings.

brit1234

Rates are too low, the sooner they rise the better. Remember it was too low interest rates that caused the credit crunch in the first place.

For a healthy economy we need savers. With a level layer of savers lenders can give out loans and every one is happy. At the moment savers are being punished for the recklessness of borrowers.

karatedragon

brit1234 wrote: »

Rates are too low, the sooner they rise the better. Remember it was too low interest rates that caused the credit crunch in the first place.

For a healthy economy we need savers. With a level layer of savers lenders can give out loans and every one is happy. At the moment savers are being punished for the recklessness of borrowers.

Yes I am sick and tired of propping up those that have over committed and borrrow all the time.

Neither a borrower nor a lender be.