Another interest rate likely!!

desperadoV2

According to BBC news, BOE may raise the interest rate by another 0.25% this thursday. which would make the interest rate at 5.50%

http://news.bbc.co.uk/1/hi/business/6329395.stm

I hope another interest rate hike would slow down the property market.

What say you?

lynzpower

I say, Im bloody glad the falt sold week before last. I had my mortgage go up 200 pcm ( and that was IO!!! :eek:)

Not moneysaving!

thesaint

Just pointing out that it isn't BBC news that believes this, they are reporting a story.

talksalot81

That said the shadow MPC voted to hold at the current level. We cant be absolutely sure what the BoE were thinking to put it up last month. We seem to think that it was inflationary data (else why surprise us as opposed to waiting for Feb when many were expecting it?). If they raise again, it tends to support that analysis. If not, then we should be asking the question of why on earth they made the Jan move!

Alan_M_2

I'd be surprised by an increase this month, the monetary committee only voted 5-4 for a rise last month, hardly overwhelming.

Woby_Tide

lynzpower wrote:

I say, Im bloody glad the falt sold week before last. I had my mortgage go up 200 pcm ( and that was IO!!! :eek:)

Not moneysaving!

200pcm on a quarter percent rise? That makes a mortgage of about £1m (on interest rates of say 6.25% rising to 6.5%)

ashcarrot

dont think it will go up, I'm looking forward to the CPI report on 13-14th

Bargain_Rzl

Woby_Tide wrote:

200pcm on a quarter percent rise? That makes a mortgage of about £1m (on interest rates of say 6.25% rising to 6.5%)

I believe she was just coming out of a 2-year fix (and was selling up so couldn't remortgage).

Jeewhizz

The shadow committee have predicted the BoE rate changes accurately the last 3-4 months, and I'd rather base any speculation on that, rather than a reported story.

I can't see the BoE doing another rate rise so early in the year. Maybe in a month or two....

lisyloo

Yes, it's an important point.
People coming out of 2 year deals may find their mortgage payments rising substantially.

lisyloo

The shadow committee have predicted the BoE rate changes accurately the last 3-4 months

I don't think they predicted the January raise did they?

As far as I know the markets are pricing in 2 rises by the summer.
Anyone not on a fixed rate had better start looking carefully at their expenditure.