BoE Interest Rate will go up in Ist quarter of 2011 ??

chucknorris

southantrim3 wrote: »

I reckon interest rates will rise sooner rather than later and way they do, dear help anyone with a largeish mortgage. I think they could go up to 4% over the next couple of years (in my opinion of course.)

But 4% is still low

adr0ck

chucknorris wrote: »

But 4% is still low

there is zero chance of 4% interest rates in the next couple of years

imo interest rates won't reach 4% for at least 5-7 years

chucknorris

adr0ck wrote: »

there is zero chance of 4% interest rates in the next couple of years

imo interest rates won't reach 4% for at least 5-7 years

Well I think that's optimistic, but that would be great for me

chucky

those that think that there would be rate rises in the near future should think about the effect interest rate rises would have on QE - it's not going to be in the governments interest, a higher rate of inflation is in their interest...

ILW

chucky wrote: »

they're sleeper sockie Id's that have been dormant for a couple of months

Do I need a separate email address to set up a separate user name on here. Think I could pass many hours arguing with myself.

ninky_2

vat increases will see the cost of living go up. a weak pound has also seen cost of commodities / imports go up. inflation hasn't been driven by low cost of debt primarily i don't see much incentive for increasing interest rates. but i'm not an economist.

Really2

ninky wrote: »

vat increases will see the cost of living go up. a weak pound has also seen cost of commodities / imports go up. inflation hasn't been driven by low cost of debt primarily i don't see much incentive for increasing interest rates. but i'm not an economist.

But you are right ninky, inflation is not being caused by increased demand (wage increases) so increasing rates will only further cool a flagging economy. (people would have even less money to spend)
GDP falling back because of that could further increase inflation (weaker £)
PS, I am no economist either.

Thrugelmir

ninky wrote: »

a weak pound has also seen cost of commodities / imports go up.

Also unusual weather patterns this year have affected crops, such as cotton and Canadian wheat (bread) in particular.

Feed grain is more expensive. Resulting in increased production costs of food items.

Batchy

rates will rise in Jans figures mainly due to Energy cost rises and VAT rises, just like Jan 2010.

There is not a lot interest rates being increased will do a lot to prevent this. Its a 12 month problem then things should settle down.

ninky_2

Thrugelmir wrote: »

Also unusual weather patterns this year have affected crops, such as cotton and Canadian wheat (bread) in particular.

Feed grain is more expensive. Resulting in increased production costs of food items.

yes i heard the italian durum wheat they use for pasta (traditionally a cheap staple) has also fared badly. personally i'm wheat free diet and don't eat meat either so i'm not sure if that's impacted on my food costs.