will interest rates go up again this month?

pollyanna24

This be true. I was too young to buy a house 10 years ago though. :rotfl:

ravenfield

I don't think they will raise the rate this week but they will do it next month. No doubt another rate rise is a requirement to keeep inflation on track. If they do increase the rate this week, then they are unlikely to change until Q4 2007

Guy_Montag

ravenfield wrote:

I don't think they will raise the rate this week but they will do it next month. No doubt another rate rise is a requirement to keeep inflation on track. If they do increase the rate this week, then they are unlikely to change until Q4 2007

Problem is, inflation isn't on track right now.

Ian_W

Guy_Montag wrote:

Don't forget that 7% is the average, that means that for every month that it's below 7%, there needs to be a month where it's over 7%.

You don't work for Government stats, do you Guy? :rolleyes:

The average is merely a historic reflection of where interest rates been, not a determiner of where it will go in the future.

For every month it's below 7% the average will actually be reducing, least that's how averages worked when I went to skool!

mystic_trev

I'm in two minds if it'll be this month or next.However it's interesting to see that swap rates have increased in the past week.

http://www.swaprates.co.uk/

Guy_Montag

Ian_W wrote:

You don't work for Government stats, do you Guy? :rolleyes:

The average is merely a historic reflection of where interest rates been, not a determiner of where it will go in the future.

For every month it's below 7% the average will actually be reducing, least that's how averages worked when I went to skool!

It was in reply to someone who seemed to suggest 7% was a peak. Of course the past is not an accurate predictor of the future, but anyone who ignores the past does so at their own risk!

You are right that for every month that it is below average, the average will drop. Of course once IRs rise above 7% again (as they will inevitably do at some point in the future) that will drag the average up again.

Mrs_Optimist

There will be more rate rises (in my humble opinion) and then it will level out before dropping again. We are coming to the end of a 5 year fixed rate, taken out in 2002 when rates were starting to go up. We have only reaped the benefit in the last 6 months or so, because of course rates went down just after we fixed, and continued to go down. Luckily our small mortgage meant we were paying a few extra pounds per month but now we are about to more than double our mortgage by moving we are going for a 2 years tracker. At least when rates fall again (and they will do, just not yet) we will reap the benefits. Over the 2 years we calculate that we wont be paying over the odds by using this type of mortgage. with a fixed rate, we have been.

sm9ai

Depends what in the inflation report. Its is very close to call.

Shadow MPC voted 5-4 to hold, and they are usually very good. Although 1 member voted for 0.5% increase.

So in my view if inflation is above 3% then rise, if not then hold until next month. (Which is probably more likely).

roswell

Im going to go for a increase, No other reason that i have a feeling that inflation hasnt fallen and i know people who were struggling at christmas who still spent large on credit in the January sales so if I take that as a generalisation of the majority of the UK then I think inflaton has risen or stuck at 3.)%

pollyanna24

Ooh, so if someone was to take a guess, when are they gona stop going up? Or (less likely), start coming down again?

Too early for me to start worrying about my fixed rate being up in April 2008?