bank of england base rate forecast?

CloudCuckooLand

Market expectations of 2% by 2012, 3% by 2013, according to BoE Inflation Report.

zierisaver

Pincher wrote: »

So here's my advice. Long term average for BOE is around 5%, so if you can get five/ten year fix for below average, you should do it. When BOE is above 5%, and going up, you should only fix for short term, up to three years.

There is nothing wrong with paying more for certainty, that's why you buy insurance. People with safe jobs and spare money can afford to take risks, but if you can't afford to risk an unexpected rise, fix intelligently: that includes not fixing if you are going to sell soon.

Have to agree with this point. Obviously nobody knows what will happen to interest rates. If you'd forecast that interest rates were going to be 0.5% a couple of years ago people would have laughed in your face, but look at them now.

5% seems about the level the BoE would like it to be around long term, so I'd look at working your finances around that. In the short-term I'd expect them to creep up early next year, but you just never know.

dimbo61

I think the BOE base rate will stay at 0.5% for at least 19 months but it may go up next month or next year !!!