What is interest rate likely to rise to?

Market_Oracle

ashm1 wrote:

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.

It would mean an aggressive cut in US interest rates during 2007

US economy heads for a hard landing in 2007

Watch for the dollar to slide long before the first cut.... though this slide has been a long time coming !

Happychappy

What joy a 15% interest rate would be I first took out my mortgage in the early 80's and paid 15%, now my mortgage finishes in 18 months and robbed by Standard Strife, my savings would benefit from a large interest rate, but somehow this might not be universally popular :rotfl:

muddyfox470

rates dont need to be raised by that much

there was an article in the economist last week about the recent increase, and if the current 5% rate was kept they *predict* that the inflation rate will become stable at 2% by 2008, compared to previous fluctuations.

I doubt the interest rate will rise above 6% imo

Ian

meanmachine_2

That's just the BoE forecasting what the economy will do. They're as clueless as the rest of us.

With regards US int rates falling - I'd have thought that impossible without the US dollar plummeting and inflation spiking.

The US appears to be in the worst possible position - a falling housing market, strong inflation and a weak currency.

That's the payback for rates at 1%.

ReportInvestor

We are likely to see some form of economic slowdown, anyway, without too much pressure on the interest rate pedal.

The Sunday Times noticed that 400,000 people had become savers last year and that DIY stores were starting to have a hard time.

Maybe 6% tops? More would start to have significant economic consequences on the unemployment front.

free4440273

meanmachine wrote:

That's just the BoE forecasting what the economy will do. They're as clueless as the rest of us.

With regards US int rates falling - I'd have thought that impossible without the US dollar plummeting and inflation spiking.

The US appears to be in the worst possible position - a falling housing market, strong inflation and a weak currency.

That's the payback for rates at 1%.

this is absolutely spot on. rates were held far too long at such a 'measly' percentage. there were understandable reasons for this: the dot-com bust, 9/11 but that is no reason to go against the tide of economic common-sense: unprecedented house price increases, zero-savings (in the states especially), and most definitely now an increase in inflation (china etc playing catch-up). i am sticking by what i have said repeatedly in the past on this forum: rates to go up to 8%, possibly more if even that does not stop the increase in house prices, especially in the south-east. have a lovely Monday week also everybody

ashm1

Hi,

Do you think the dollar will rally on Monday or sink further?
(normal trading conditions)

Thanks,

Ashley.

ReportInvestor

That's an idea.

With a "significant" anniversary coming up for my partner, I'll just go and check those flights to New York .

ashm1

It's funny that the dollar coin is being pushed again....
http://www.timesonline.co.uk/article/0,,11069-2462714,00.html



Any recommendations for goods to get while in New York ?

Is there a MSE article about currency exchange rates ?


Thanks,

Ashley.

meanmachine_2

That's because 1) inflation is making the quarter obsolete and 2) at least a dollar coin has some intrinsic value, should the currency totally tank.

At this rate they'll have to put gold into the coins to keep the currency above water!

Maybe they could fit an ipod shuffle into each one - voila, each dollar is suddenly worth $99!