Interest rate rise benifits

RenovationMan

Le_Chuck wrote: »

nope that proves my point

What was your point again?

pioneer22

Dont make me laugh, so your saying if deflation occurs then all these companies will put their prices DOWN. Yeah right, surely even if they did drop prices then the amount saved by having a low interest rate would be greater wouldnt it?

Seems a lot of people on here want rates to increase so they can make essentially free money off the interest. For most people i'm sure having hundreds of pounds spare from lower interest will be way beneficial than having them go up.

ILW

pioneer22 wrote: »

Dont make me laugh, so your saying if deflation occurs then all these companies will put their prices DOWN. Yeah right, surely even if they did drop prices then the amount saved by having a low interest rate would be greater wouldnt it?

Seems a lot of people on here want rates to increase so they can make essentially free money off the interest. For most people i'm sure having hundreds of pounds spare from lower interest will be way beneficial than having them go up.

Surely the cause of much of our current problems is too much debt. Would it not be a good idea if this was discouraged from happening again? If rates had been higher 10 or 15 years ago, the whole mess would probably not have happened to the extent it has.

pioneer22

ILW wrote: »

Surely the cause of much of our current problems is too much debt. Would it not be a good idea if this was discouraged from happening again? If rates had been higher 10 or 15 years ago, the whole mess would probably not have happened to the extent it has.

I agree but Im not stupid enough to get a 100% mortgage, in my eyes it is frustrating. As I worked and studied hard to get the job im doing, and I cant see how them going up will help me out.

Wont a lot of people be in a pickle when they do go up? As gas/electric petrol etc have all gone up. Wont it go tits up if they do go up?

Generali

pioneer22 wrote: »

Dont make me laugh, so your saying if deflation occurs then all these companies will put their prices DOWN. Yeah right, surely even if they did drop prices then the amount saved by having a low interest rate would be greater wouldnt it?

Seems a lot of people on here want rates to increase so they can make essentially free money off the interest. For most people i'm sure having hundreds of pounds spare from lower interest will be way beneficial than having them go up.

Deflation is prices falling. By definition if you have deflation, companies are cutting prices.

ILW

pioneer22 wrote: »

Seems a lot of people on here want rates to increase so they can make essentially free money off the interest. For most people i'm sure having hundreds of pounds spare from lower interest will be way beneficial than having them go up.

That only applies to people that are in debt. I would guess that around half the population have no debt at all.

Thrugelmir

StevieJ wrote: »

I pretty sure the early BTL adopters still thought they were taking a risk, hindsight = 20/20 vision

BTL was a marketed product by a UK lender. Ownership of residential property for letting purposes is nothing new as a business. Like the Dot Com share boom. Fads can quickly fade away.

Le_Chuck

RenovationMan wrote: »

What was your point again?

that QE = more money in the syatem = inflation

RenovationMan

Le_Chuck wrote: »

that QE = more money in the syatem = inflation

But that's the whole point of QE, to help prevent deflation. If it didn't cause inflation, then there wouldn't be much point to using it.