We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

What is interest rate likely to rise to?

1235

Comments

  • FaTB
    FaTB Posts: 162 Forumite
    I think rates will rise to 7% in 2007, and that will be enough to see a property crash and a ftse crash!


    I doubt that will happen, not in '07 anyway, would be GREAT if it did though !!
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    The next few months of pay negotiations should be "interesting" - pay has more of a feed into govt/BoE (eg Toytown) inflation. Real inflation has more of a feed into pay negotiations.

    Recursion - see recursion...
  • free4440273
    free4440273 Posts: 38,438 Forumite
    i am sticking to my guns here: rates in the UK to rise to between 7 and 8 per cent in 2007. in the states rates to fall, then rise again to between 5.50 to 6 per cent in 2007. pessimist? me??? have a lovely weekend everybody. :)
    BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!

    THE KILLERS :cool:

    THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:
  • DocProc
    DocProc Posts: 855 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Here's the 'History' on it:

    UK Interest Base Rates From 1985 to 2006
  • ashm1
    ashm1 Posts: 234 Forumite
    Cold winter will drive up fuel costs leading to higher core inflation. Better hope the dollar doesn't collapse!

    People flocking to US to shop now but come Feb' can't afford to heat their home and interest rates have been raised to 5.25%.


    Ash.
  • kenshaz
    kenshaz Posts: 3,155 Forumite
    Part of the Furniture Combo Breaker
    All speculation ,so many different views,no one really knows ,because if they did they would be multi billionaires.But the Bank of England has maintained rates against inflation ,because of the fact that they are independent of politicians.
    [FONT=Arial, Helvetica, sans-serif]To be happy you need to make someone happy.[/FONT]
  • free4440273
    free4440273 Posts: 38,438 Forumite
    independent in theory - but not in practice. i don't believe they are combatting inflation - if that was the case, rates would (should) be between 6 to 7 per cent. inflation is exceeding 2.4 per cent at present. heaven knows what will happen when futures push up the price of oil. no doubt the BoE will stay pat, now there's a surprise :)
    BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!

    THE KILLERS :cool:

    THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:
  • manhattan
    manhattan Posts: 1,461 Forumite
    Uniform Washer
    check out june 1988 on the chart - a +2% rise! that month.

    wouldnt it be great for us savers if that happened again.any idea what happened for that big rise to occur?
  • What happened in 1988? The 1987 election.

    IRs tended to go down before the election (or taxes were cut) then went back up again.

    Lawson and co always flooded the economy with money in the lead up to an election then slammed on the brakes after it.

    Really Brown is no different. He's just not done the slamming bit yet. We've run a massive deficit up in the "good times" thinking there's never going to be a bad time.

    Let's hope there never is, for all our sakes.
  • free4440273
    free4440273 Posts: 38,438 Forumite
    bad time will be upon us soon - question is for whom? debt mountain just keeps on rising with the xmas shopping spree upon us.
    BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!

    THE KILLERS :cool:

    THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.2K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.