guesses and to when the interest rate will rise

purch

is there a minimum/maximum the BOE can raise/lower rates by?

No.

The more frequent 1/4 % moves are a relatively recent idea.

auctiondanny

my guess is 5.25% after end of tax year 2011

MacsReturns

No idea, but now I've paid off the mortgage, all I can say is bring it on. For the first time in my life we could finally have interest rates that actually favour my balance of debt vs savings.

DavidHayton

I reckon that it will stay where it is for far too long. Only when it is obvious to all concerned that inflation has become embedded in the economy will there be a panic and a rapid reaction. David

mbga9pgf

Inflation will peak next year. By 2012, we will be wishing for inflation. Over 5 years, I reckon that average inflation will be pretty low.

julieq

MacsReturns wrote: »

No idea, but now I've paid off the mortgage, all I can say is bring it on. For the first time in my life we could finally have interest rates that actually favour my balance of debt vs savings.

No, you really don't want high rates, because although that may increase the amount in your savings, it'll reduce the the value of them. It's very unusual in times of high inflation to be able to get above inflation savings rates. Beware of what you wish for.

Savers are parasites anyway. I've explained this a number of times. You shouldn't be able to get rich by just sitting on cash and doing nothing with it. The only reason savers can ever get above interest returns is because other less prudent people take some risks and generate wealth. But they don't half complain when things go wrong. Lowest of the low, savers.

Generali

Euphoria1z wrote: »

is there a minimum/maximum the BOE can raise/lower rates by?

i.e is the minimum increase/decrease 0.25% or can it be 0.10%?

In practice the minimum would probably be 0.01% because most bank computer systems can't really cope with less than that for repo trades.

RenovationMan

mbga9pgf wrote: »

I think the BOE are sending out messages about rates as they are concerned about 1 metric. That being the % of mortgages on standard variable. I think they are starting to get quite concerned; one way to boost re-mortgage activity (onto more punitive fixed rates and therefore increased bank profits to pay back SLS) is to put the frighteners on those with big mortgages. Like me.

And like me. But we dont scare easily.

I dont think rates will rise in the short term, but as I have no control over it I'm not going to fall into the trap of turning my wishful thinking into FACT.

Instead I will simply hope that rates stay at 0.5% until at least May/June 2012, at which point I am allowed to make my next 10% overpayment onto my mortgage, cushioning the blow somewhat.

maveli

It will go up in Jan or Feb 2011 by 0.25%, Looks like I have to say goodbye to by 0.73% on my mortgage.

inspector_monkfish

its not going anywhere for at least 18mths