BoE raises rates to 5.25%

Jim_B_3

I'd like to go for low cost, high interest please. Each pound overpaid goes much further.

GooeyBlob

The CPI rate is just an illusion, look at the RPI rate (3.9%) for a more realistic indicator of inflation. In fact, even that looks lower than inflation "feels".

I'm glad I invested in some index-linked savings certificates last year now - they're based on RPI. I didn't think they'd perform too well and only took them out to partially cover myself against inflation.

I bet there's another RPI rate rise in the pipeline too.

MickKnipfler

Jim_B wrote:

I'd like to go for low cost, high interest please. Each pound overpaid goes much further.

Me too..... Less capital to pay off too! Or don't people worry about that these days?

gelato_cat

Nope. Hence all the people who are mortgaged up to the eyeballs on an interest-only repayment scheme :eek:

Suze

MickKnipfler wrote:

Me too..... Less capital to pay off too! Or don't people worry about that these days?

MickKnipfler

Suzey wrote:

Nope. Hence all the people who are mortgaged up to the eyeballs on an interest-only repayment scheme :eek:

Suze

So, will a Japanese 300 year mortgage make any difference?

Or....will paople start to think that renting off the bank is different to renting off the landlord? I suppose it is different in that you risk/gain from equity movements.

masonic

MickKnipfler wrote:

Or....will paople start to think that renting off the bank is different to renting off the landlord?

The bank doesn't send someone out to fix your central heating.

anticlaus105

masonic wrote:

The bank doesn't send someone out to fix your central heating.

Or pay the management fees on your flat.

ashgun

ICICI Has increased rates to 5.65% from 11th Jan. This is the second time they have increased rates immediatly after BOE rate increase.

reehsetin

this is gonna sound like a really dumb question, but if the boe rate is 5.25% shouldnt the interest rate all savings account minimum be 5.25%?
just clocked on to the fact that before it was 5% yet some nationwide accounts you only get a couple of %

Paul_Herring

GooeyBlob wrote:

The CPI rate is just an illusion, look at the RPI rate (3.9%) for a more realistic indicator of inflation. In fact, even that looks lower than inflation "feels"

They're both illusions. The quote in my sig comes from http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/12/04/ninflation04.xml