What is interest rate likely to rise to?

ArranP

What level is it likely the bank of england base rate will rise to? do you think it will rise past 8% ? maybe onwards upto 15% again ?

equitydealer

Unlikely to see 8% let alone 15% unless something serious happens to the economy.

I think we'll see rates top out at 5.75%-6% this time next year.

free4440273

i have been saying for several months now that i think rates will rise to between 7 and 10 per cent. when i mentioned this a couple of weeks ago i got laughed at. 'hidden' inflation is becoming a menace. i think we will see rates go to the level at which they were during the 80s - and this time house price increases are reaching dizzying and unjustified heights even ralative to the 80s. if the BoE starts ratcheting up rates by full percentage points then this might mean less of a chance of rates going past 8 per cent but they clearly stand by their incremental .25 increases.

uk_steve

my doom and gloom is



it be something like 7.5% Mid 2008 i been thinking this since 2004 for some reason or another

he!he! mistic meg or mistic steve



thats my 5p worth:j

codetown

I doubt rates will grow that much.

Global economy is slowing down (see USA data) and there are serious worries about the biggest contributor to the inflation, i.e. house prices, which are predicted to stop growing very soon.
My view is that in 2007 we will have a slow-down of things (both inflation, economy growth and consequently interest rates) and from 2008 an almost standstill situation for a few years.

So my bet would be this time next year BOE <= 5.5%, and in 2008-2009 BOE never exeeding 5.5%

dealornodeal_3

I think rates will rise to 7% in 2007, and that will be enough to see a property crash and a ftse crash!

clear_blu

In Sunday's newspaper the big shops were saying that they were in line for 15% extra spent on puchases this Christmas. Some unions were rumbling on about above inflation pay rises. Council Tax is predicted to rise by an average of at least 5% and the energy price rises are just starting to filter through onto consumer goods.
I'm with mystic Steve (lol) on this one, at least 7% within 18 months............:mad:

meanmachine_2

Just come back from a day's shopping - despite it being Buy Nothing Day. D'oh!

Noticed that food prices are going through the roof. Restaurant prices are beyond a joke and even clothes aren't as cheap as they were 12 months ago.

Electronics still low and/or falling, but 2.4% inflation? Do me a favour.

Hidden menace indeed.

ashm1

Hi,

Commentators point to a US economy slowdown in 2007.

http://business.timesonline.co.uk/article/0,,16849-2469994,00.html

Not sure what the future holds... China offloading $ and buying Euro's?

Rising European rates and lowering US rates ?


Kind regards,

Ashley.

free4440273

'great' to see we are all reaching a consensus on this one. not so great when we get there obviously but, as i have said before, at least savers will finally be rewarded - and not a moment too soon either...have a great weekend also everybody

Market_Oracle

UK Interest Rates set to rise to 5.25% by March 2007

Longer term ? UK Interest Rates could rise to 5.75% in 2007