IR on hold again grab a deal

moneyinmypocket

Plenty of nice places on market make an offer rates on hold again

RenovationMan

It's interesting how the BoE IR meetings are such non-events nowadays. They used to be greatly anticipated with at least a 2 page thread preceeding the announcement. Now it barely gets reported on the news and rarely raises a mention on here.

I think everyone is pretty much consigned to the idea that we will have 0.5% for the next 12 months.

Graham_Devon

RenovationMan wrote: »

It's interesting how the BoE IR meetings are such non-events nowadays. They used to be greatly anticipated with at least a 2 page thread preceeding the announcement. Now it barely gets reported on the news and rarely raises a mention on here.

I think everyone is pretty much consigned to the idea that we will have 0.5% for the next 12 months.

True. This goes for the wider public too. People are simply assuming there is no change and won't be for a long time to come.

Which is quite a dangerous game to play. We've become very accustomed to these rates.

Gott admit, even I don't factor in rate rises in my finances anymore.

SecondLegDownIsTheBigOne

My wannabe FTB friend invited me to dance party where he told me that he is saving money for a deposit, but low IRs and tax mean that his money isn't growing at all. It's going to take a much longer time for his savings to build into a credible deposit. He's quite happy though, house prices are falling - the longer it takes, the cheaper they get.

Sibley

I think everyone is pretty much consigned to the idea that we will have 0.5% for the next 12 months.

I remember all the bears saying rates would rise.
There is no way rates can stay low etc.

Another example of how they get it wrong.

He's quite happy though, house prices are falling - the longer it takes, the cheaper they get.

Or the less property is for sale.

People dont need to discount their homes. Just take it off the market and wait until prices rise.

You will get the message one day. You will never get a cheap house.

Generali

RenovationMan wrote: »

I think everyone is pretty much consigned to the idea that we will have 0.5% for the next 12 months.

The chances are that you are right. It'll be interesting to see what happens if the US recovery gets a head of steam up. At the moment the assumption is that deleveraging is locked in and that will keep growth rates at or below 2% over there and I must admit, I subscribe to that theory too.

However if US manufacturing takes off at the expense of imports from China, possible given the 'flexibility' of US wages and cheap natural gas, then the economy could really start to take off there. That would put upward pressure on market interest rates across the world as it would open up competition for scarce funds for investment.

PaulF81

People are continuing to confuse market rates with base rate. As long as fiscal policy continues to squeeze and effects a deleverage, rates wont go up. The minute the government see spare cash in peoples pockets, watch fuel duty, booze duty ciggy duty and a whole host of stealth taxes to come into play. They can prevent inflation through the fiscal drag, whilst reducing the deficit. If you havent noticed, pretty much what has happened over the past 12 months.

Thrugelmir

PaulF81 wrote: »

People are continuing to confuse market rates with base rate. As long as fiscal policy continues to squeeze and effects a deleverage, rates wont go up.

Lenders are finding ways of squeezing borrowers with progressively higher rates. As the low base rate continues to hit margins and makes raising retail deposits difficult.

Heyman_2

RenovationMan wrote: »

It's interesting how the BoE IR meetings are such non-events nowadays. They used to be greatly anticipated with at least a 2 page thread preceeding the announcement. Now it barely gets reported on the news and rarely raises a mention on here.

Very true. I think the other line that has been taken on here previously was that the BoE were getting it very wrong and should be raising rates back to 'normal' levels.

We don't see that anymore and the unanimous nature of the MPC vote (9-0, which I expect to be repeated for this month's vote) which includes BoE members previously described as 'hawkish' (Weale, Dale, Broadbent) tells its own story.

But as we've seen before things can change very quickly, and personally I think they will towards the end of this year.

PaulF81

Depends on the effect of the olympics I suppose. I am expecting some form of stimulus up to the run up to the General Election, the Jock vote issue is more about sidelining labour in Scotland I believe than anything else. The more Jocks voting snp = less Labour MPs and a bigger majority for the conservatives.

movilogo

I think everyone is pretty much consigned to the idea that we will have 0.5% for the next 12 months.

And many buyers are now accustomed to the fact that their monthly mortgage will be same for rest of their lives.