BoE raises rates to 5.25%

[Deleted User]

kittie wrote:

There must be some quite difficult underlying reason for this decision

Yes I agree - probably the rate of inflation is hitting the roof!!! We'll see next week.

gil13

the BOE always saw the CPI measure to peak up early this year and then fall, I still suspect this will be the case especially when lower utility bills begin to feed through. I would see no more than another 1/2 point increase between now and the end of the year and if the CPI does come back they will take one or two of the recent rises off. I always thought they should have done a 1/2 point last time and get the job done early, but they like their 1/4's. I hope that the banks pass on quickly but remember last time when it was a surprise it took the banks a few weeks to make their moves. For savers and the new ISA season coming up there could be some juicy rates to be had.

[Deleted User]

rakesh wrote:

i wonder if there could be another rate rise in Feb?

A bit keen, but FYI the next MPC decision is due 8th February, with the quarterly Inflation report due 14th February (Valentines Day).

greyteam1959

If you think about it the rate of inflation has to rise cos the cost of energy is a part of virtually every single item or service that takes place in this country.
Inflation will rise further I am sure and unfortunately the only way that they try to control it is to increase the bank base rate. Thats life !!

Madiba_2

How long does it normally take for the rate increase to hit the banks?

I have ICICI, Icesave and NSandI direct ISA, all with guarentees.

gil13

NSI Isa, I think was same day or very soon, not sure about the rest and Icesave do have a cap on their rate I believe.

MickKnipfler

Deleted_User wrote:

Spot the borrower on the savers board.

Wrong.....

Total debt=this month's credit card spending which will be paid at the end of the month.

I was kidding but what I was trying to say was......I can smell gas!

Madiba_2

gil13 wrote:

NSI Isa, I think was same day or very soon, not sure about the rest and Icesave do have a cap on their rate I believe.

I dont think Icesave has a cap.

lisyloo

How long does it normally take for the rate increase to hit the banks?

Some do it very soon, others take 6 weeks unfortunately.

MickKnipfler

Madiba wrote:

How long does it normally take for the rate increase to hit the banks?

Depends if you're saving or borrowing!