BoE Intrest Rate Rise

newdud

When the BoE raise the intrest rate (when ever that is ?) is it likely that the rate will go up in 0.25% increment or is it liley to be much more more stepe

I would value forum members openion

Thrugelmir

The BOE will raise rates by whatever % it thinks appropriate. Could even raise rates by just .125% (eighth).

Wh05apk

newdud wrote: »

When the BoE raise the intrest rate (when ever that is ?) is it likely that the rate will go up in 0.25% increment or is it liley to be much more more stepe

I would value forum members openion

Yes, very likely to be 0.25% or more.................

holly_hobby

BOE's role is amongst other things, to manage inflation - which is soaring at this present time (due mainly to the increase in the costs of basic items, rather than the man in the street spending wildly) . Although in traditional times of high inflation, interest rates would rise to counteract the issue, we are in the worst financial climate ever known, and a double dip recession, so whilst BOE must manage inflation below a defined paramater, they also have to consider the very real impact any interest rate rises will have on the recovery (such as it is) - so its a real balancing act at the moment.

In my opinion, I don't believe rates will rise for at least 6 mths (and my true opinion is we are looking at 12 mths at least), and when they do, traditionally BOE do utilise a 1/4% weighting, however, the times we are in are unprecedented and even Mr King has stated he simply has no idea how or when we will emerge, so the rise may well be less or more - and absolutely no one (other than BOE), can predict with certainty, when or what any rise may be, they are only able to give opinion.

If you are concerned about how you will maintain your mge commitment when mge rates start to increase, as a result of BOE base rate movements - I would strongly suggest you consider securing a fixed rate mge product at a time when they are relatively low. This will give you the power to budget, and also piece of mind that your mge commitment will be set for a defined period. (nb - any transfer to a fixed rate may incur a fee)

Hope this helps

Holly

Thrugelmir

holly_hobby wrote: »

BOE's role is amongst other things, to manage inflation - which is soaring at this present time (due mainly to the increase in the costs of basic items, rather than the man in the street spending wildly)

Wrong type of inflation for BOE to manage with interest rate changes. As a mixture of imported cost and higher taxation.

BOE appears to be focussing on its other major responsibility, of managing financial stability. Which up until the Eurozone melt down appears to done reasonably well. Though the problems will take many years to address and correct.

holly_hobby

One of the roles of BOE and its monetary policy, is concerned in setting interest rates to control inflation (gov target of 2%) .... and that is one of the main considerations which influences rate movement - of course in current circumstances this has to be managed with the recovery.

H

brit1234

Either 0.25 or 0.50% increases. However the BOE are falling to rain in inflation, rates should go up now. We are being robbed.

:mad: