Bank Of England Interest rate

frost007

So its July and the BoE interest rate remains at .5%
i hear it set to go up in August.
what do you think and if so what do you think it will go up to?

i apologise if this is already being spoken about but im new...
well thats my excuse and im sticking to it

GMS

Did you hear it from a man in the pub? The taxi driver who took you to the pub? Next door neighbour?

The committee who set the rate are at odds with each other and every economist you could speak to have different opinions.

It will rise at some point because it has to. When that will be really is the million dollar question. If I had the answer it would make my life much easier.

frost007

GMS wrote: »

Did you hear it from a man in the pub? The taxi driver who took you to the pub? Next door neighbour?

The committee who set the rate are at odds with each other and every economist you could speak to have different opinions.

It will rise at some point because it has to. When that will be really is the million dollar question. If I had the answer it would make my life much easier.

were you the guy drinking the G n T;)

Thrugelmir

While the focus is on interest rates, the greater danger perhaps comes from overpriced property.........

frost007

Thrugelmir wrote: »

While the focus is on interest rates, the greater danger perhaps comes from overpriced property.........

explain further please.....im just learning

Thrugelmir

frost007 wrote: »

explain further please.....im just learning

When interest rates normalise as ultimately they will do. What impact will that have on property prices?

BOE has set base rate low at emergency levels, not to support the property market, but to try and keep an overly indebted economy growing. Whilst also providing the banks with adequate liquidity to enable them to maintain lending.

The offset of a low interest rate policy is currently a devaluation of the pound.

kingstreet

There are some 30,000 "zombie" households waiting for rates to rise and when they do, the market will be flooded with forced-sales and repossessions.

My tip for rate rises. None 'til 2012. Inflation is down today and growth is at 0.1% for the last quarter.

dannymccann

As long as it doesnt rise before March 2012 when I can get a 5 year fix or something I'll be happy!!

SAHD_Jim

I agree that we are unlikely to say rate rises until some time in 2012. The inflation there is atm is largely cost-push, so interest rate policy would have limited effect. Where there is demand-pull inflation, it is falling - yesterday's figures were influenced by clothing & electrical goods etc.

Furthermore, the MPC currently seems to have a strong dove majority. There was plenty of talk yesterday on whether we'd see more QE rather than a rate increase.

But basically, no-one knows. So whoever said that rates were "set to go up in August" is talking out of their behind.

CLAPTON

kingstreet wrote: »

There are some 30,000 "zombie" households waiting for rates to rise and when they do, the market will be flooded with forced-sales and repossessions.

My tip for rate rises. None 'til 2012. Inflation is down today and growth is at 0.1% for the last quarter.

the June figures for the RPI was 'only' 5% higher than a year ago
and was unchanged from the May figures