Interest rates to hit 1.25% by year end

Vincenzo

IveSeenTheLight wrote: »

Interesting statement

I liked this bit too....

"Some people are running ahead of themselves and saying that we are pre-announcing or laying the ground for a rate rise," Mr King said.

Vincenzo

HappyMJ wrote: »

I wish they'd hurry up and do it. Whilst inflation (4%) exceeds what I earn on my savings (3%) then I am losing money each month.

I keep reading this kind of statement in the press and I think it is far too simplistic. The rate of inflation is an average of prices so what really matters is what you intend to use that money for. If it is for a house purchase and you live in an area with either falling or stagnant prices, your 3% interest is look pretty good right now.

I expect that most large purchases, such as houses, cars, renovations etc will mostly likely be the same price or less this time next year so assuming this is what you are saving for, you are probably doing pretty well.

Besides, I doubt you will get much more interest on your savings until the base rate exceeds 3% which is likely to be some time. Think back to when base was 5%, what could you get then? I believe the average was below the base rate of 5%.

Heyman_2

Vincenzo wrote: »

I liked this bit too....

"Some people are running ahead of themselves and saying that we are pre-announcing or laying the ground for a rate rise," Mr King said.

I think it's right that he corrects the nonsense going on at present within media circles where journalists are getting carried away.

The fact is, the rate is set collectively by the MPC every month based on the information they have in front of them. This talk of 'laying the ground' is ridiculous, and he is absolutely right to bring that sense of reality back from people trying to add an extra dimension to what he's saying everytime he opens his mouth!

Heyman_2

Oh good god. Roll on Ghoul Tuesday!

Gorgeous_George

GHOUL_MONDAY wrote: »

A lot of dispicable characters on here. How you ghouls sleep must boggle the mind of top scientists.

There is nothing wrong with people wanting cheaper house prices. The pain suffered by those who paid too much is an unfortunate side-effect but is not the fault of the wannabe home owner.

Government policy is to maintain house prices in terms of the numbers whilst eroding the true cost with inflation. The Tories want a low wage economy.

GG

mystic_trev

I can't wait for GHOUL_THURSDAY :eek: Only another 10 mins :mad:

roddydogs

Stand by for a parade of "I cant afford my mortgage increase" story's on the Beeb

Percy1983

GHOUL_WEDNESDAY wrote: »

It is unbelievable just how bitter and twisted some ghouls are to wish unemplloyment, hardship, homelesness, and stavation on there fellow man, ghoul or no ghoul.

It is unbelievable just how bitter and twisted some hpi cheerleaders are to wish unemplloyment, hardship, homelesness, and stavation on the young.

ps, has anybody else been clicking the spam buttons on the ghouls?

Dvader

roddydogs wrote: »

Stand by for a parade of "I cant afford my mortgage increase" story's on the Beeb

1.25% jump in base rates will mean a huge jump up in monthly payments. As wages and benefits continue to fall inrelation to inflation it does not look good for house prices.

FTBFun

Percy1983 wrote: »

It is unbelievable just how bitter and twisted some hpi cheerleaders are to wish unemplloyment, hardship, homelesness, and stavation on the young.

Get a grip.

No-one is going to suffer "unemployment, hardship, homelessness and starvation" because they can't afford to buy a house.