What is interest rate likely to rise to?

FaTB

dealornodeal wrote:

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

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

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.

DocProc

Here's the 'History' on it:

UK Interest Base Rates From 1985 to 2006

ashm1

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

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.

free4440273

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

manhattan

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?

meanmachine_2

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

bad time will be upon us soon - question is for whom? debt mountain just keeps on rising with the xmas shopping spree upon us.