Interest rates to hit 1.25% by year end

ukcarper

Percy1983 wrote: »

I am going to get there eitherway, I would just rather interest rates where a little higher when I get there.

By all means the fallout I wish to see wouldn't really cause a housing crash but will hit a few fools, no problem really.

That says it all really those fools who you think over stretched will probably be ok but people who have been unlucky in some otherway will be the ones to lose out.

wolvoman

1.25% base rates?

Means my massively stretched £350k+ mortage will cost me over £400 a month in interest.

The hardship.




Seriously, the last 2 years have been like a gift for people like me on base rate trackers - I've saved not far off £30k in interest. Can't have any complaints about a gradual rise in interest rates.

gagahouse

ukcarper wrote: »

How good will its credibility be if it pushes us back into recession?

Their official mandate is to target inflation, not GDP, although they have been helping in that regard with ZIRP and QE.

The BOE rate rising to 1.25% is still considered ultra-low, inflation expectations are ratcheting up, they have to follow suit unless they fancy a currency crisis.

Breakeven rates (difference between Gilt and inflation linked Gilt) have "soared" in this forum's parlance.



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Just checked the intraday graph since the dovish BOE inflation report just released, the breakeven rate on 10yrs at least has stayed the same, sterling though is off 100 pips immediately.

ILW

ukcarper wrote: »

That says it all really those fools who you think over stretched will probably be ok but people who have been unlucky in some otherway will be the ones to lose out.

What do you mean by unlucky?

Percy1983

ukcarper wrote: »

That says it all really those fools who you think over stretched will probably be ok but people who have been unlucky in some otherway will be the ones to lose out.

As many on here have pointed out to me, it is unlucky that I was born too late so just make the best of it you can, so likewise people who have lost jobs etc are unlucky and should make the best of it. On the flip side I had no control over my year of birth people who have lost jobs have some control, every sympathy for them but as mnay have said life generates winners and losers, I am working hard to be a winner and if I pass many losers on the way so be it.

ukcarper

ILW wrote: »

What do you mean by unlucky?

Have had to take a pay cut, lost thier job get another paying less etc.

ILW

ukcarper wrote: »

Have had to take a pay cut, lost thier job get another paying less etc.

Can happen to anyone, but people need to realise that you have to either put something away for such eventualities or arrange your outgoings with a little bit to spare. How long should someone continue to keep up a lifestyle that they simply cannot afford?

ukcarper

Percy1983 wrote: »

As many on here have pointed out to me, it is unlucky that I was born too late so just make the best of it you can, so likewise people who have lost jobs etc are unlucky and should make the best of it. On the flip side I had no control over my year of birth people who have lost jobs have some control, every sympathy for them but as mnay have said life generates winners and losers, I am working hard to be a winner and if I pass many losers on the way so be it.

You have got to overcome that I'm unlucky to be born when I was complex you have.

chucknorris

wolvoman wrote: »

1.25% base rates?

Means my massively stretched £350k+ mortage will cost me over £400 a month in interest.

The hardship.




Seriously, the last 2 years have been like a gift for people like me on base rate trackers - I've saved not far off £30k in interest. Can't have any complaints about a gradual rise in interest rates.

I'm in a similar position (bit more though), when rates dropped to 0.5% I hoped for 2 years which we've now had. So I can't complain, I hope they take 2-3 years from now though to get back up to around 5%, that would be another great bonus.

Percy1983

ukcarper wrote: »

You have got to overcome that I'm unlucky to be born when I was complex you have.

As do the 'I'm unlucky I lost my job' brigade.

I and man born much later than me have to pay for more due to the year we where born, we are all told to get on with it.

Yet those who have lost jobs and haven't found another and have nothing in savings should be helped?

As I say despite my year of birth I will be buying well ahead of the average FTB age and going straight to a 3 bed semi, this maybe down to hardwork or luck, but I do believe you make your own luck to a point.

Right now I am winning so all it great, but not everybody can be a winner can they?