will interest rates go up again this month?

F_T_Buyer

PoorDave wrote:

If the market sentiment braces itself for a raise this month, then it's good/average news if rates stay the same/go up.

However, if the market expects no rise, as we had one last month, then a raise is bad news, as it's more of a surprise.

Sentiment is important.

Put me down for 0.25% up this month

Lets watch the BBC report a rate rise again, it will probably get more media coverage than bird flu.

Oh, and Nationwide will probably say rates have peaked for the fourth time in 7 months.

ravenfield

I think we should start a poll for the decision of BoE this coming thursday announcement on interest rate. We shall see how accurate we MSEs are in predicting the outcome.

Anyone knows how to start a poll here?

layercake

bobby_davro wrote:

what date do they decide this month?
Even though i'm all set to buy over the next couple of months, i still haven't found a property i like, but i know the price range i can afford.

Iv'e already got one of those mortgage in principles things, but am i able to take advantage of the deals currently out now with the current interest rates, pay the fees that are required and then find the property i'm after over the next couple of months.
Or do i literally have to have all the wheels in motion before hand, i.e solicotors, offer accepted, etc before i can officially get the mortgage deal?

As far as I know, for fixed deals, there are no guarantees untill you have paid the arrangement fee. Agreement in principle basically just says you are good for the initial loan, the repayments are linked to BOE rates.

ManAtHome

ravenfield wrote:

I think we should start a poll for the decision of BoE this coming thursday announcement on interest rate. We shall see how accurate we MSEs are in predicting the outcome.

I think most MSEers are too practical/sensible to predict what the BoE will do. To give a similar example, you notice that you're spending more than you earn, and every month the defecit goes up do you:
a) tell the OH not to panic, you'll move into credit in 6 months time
b) take corrective action immediately

Lorian

ravenfield wrote:

I think we should start a poll for the decision of BoE this coming thursday announcement on interest rate. We shall see how accurate we MSEs are in predicting the outcome.

Anyone knows how to start a poll here?

Bit late, but lets see who can guess it right, here's the poll:

http://forums.moneysavingexpert.com/showthread.html?t=371280

Winston_the_Dog

It appears to me that there is one major consideration that everyone appears to have overlooked in the various discussion about interest rates and that is the UK joining the Euro at some point in the future.

When this happens interest rates will fall to the European level, generally way below the level we have to put up with and will finally put an end to the myth of high interest rates, low inflation.

In my opinion this won't happen with the current government as they are far too incompetant to be able to organise an economic change of any complexity. Be interesting to hear other people views though.

zar

They were held

bobby_davro_2

great news..
Better get my act together before this time next month...

free4440273

free4440273 wrote:

everyone knows my views on this already - but will bore you all once more. they should indeed go up (real inflation is far exceeding three per cent - and they don't even admit it has reached three per cent!). rates won't go up because the BofE is just plain incompetent now. a cliché to say it i know but for me all eyes are now on the fed: they won't be reducing rates anytime soon and (therefore) neither will we. has the day of the saver finally arrived? i hope so, my nationwide bond expires in Oct 2007.

...had to requote my quote so posters would understand where i am coming from so forgive me: they really are incompetent - ok, so there was no increase today. there will be next month or the month after or the month after that...and those increases will be even bigger than they should be because they refused to fire a shot across the bows. the message is: 'carry on spending guys; carry on taking out even bigger multiples of mortgages; carry on taking ever more risky variable interest only mortages; debt? what debt? magic wand ? we have one!'. as i say, the federal reserve is far more credible: they will NOT be reducing rates any time soon - i am going to take my cue from there; i would suggest the incompetent BofE do the same (ecb will NOT be reducing rates any time soon either; Japan MIGHT very well raise rites slightly - be interesting to see how far the yen 'carry trade' unwinds). have a good friday everybody - safe driving also

mystic_trev

If you look at "swap rates" they've priced in two more increases this year and possibly a third.I agree with free440273 that once IR's have peaked they won't come down again in a hurry.It'll be interesting to see what the CPI figures are next week. The BOE will already have seen these so I can only assume there was no change, or a small reduction to 2.8 or 2.9% If (for any reason) they'd gone up, the BOE could be in deep trouble with their "gently gently" approach.

Many recent buyers (2004/5) and highly geared BTL's will be on fixed rates due to expire in the next few months. Draw your own conclusions!