Will there be an interest rate change in march?

epz_2

given the previous rises have already been forgotn about and the bbc was on about the biggest rise in house prices since last march (1) it would seem wise to whack anouther on before spring, its still well over target and i certainly wouldnt put it past iran to do something nasty now bush is talking about invadeing them.


(1) not saying i belive that or if its been "adjusted" by estate agents etc

rebeccaj

is it this Thursday that they meet?

ManAtHome

This Thursday 12:00 when they announce - think they meet Tuesday/Wednesday (doubt if they do 8 hour days though...)

Biggles

Still looking for the option "How the hell would I know?"
;-)

Phirefly

We've watched in horror at all the increases over the last 6 months during which we've been negotiation over our house purchase.... the law of the s*d will dictate that now we've FINALLY clinched the deal and reserved our fixed mortgage, the rate will stay the same or drop :rolleyes:

ManAtHome

Inflation has been above target for nearly a year despite the quid going up in value against both the dollar and euro. Wasn't that long ago "they" were talking about cracking $2 to the pound, now a drop to $1.80 is being forecast.

Of course we could just carry on with the debt mountain (both personal and country), or even reduce rates to chuck a bit more of the future on the fire...

wibble68_2

I don't see an increase Thursday.

They won't make a move when they have insufficient data.

The last move was made on the back of inflation data.

epz_2

wasnt the bbc on about some sales figures from january and febuary yesterday showing increased spending, particularly on food.

frankly i think it would be highly irrisponsable to not put them up once more before spring kicks in but then i also think they should be jumping on the banks offering interest only morgages with no repayment vehicals and stupid salary multiples.

talksalot81

Generali wrote:

Isn't their job to keep the CPI in the range 1-3%? The MPC seem to be doing pretty well at that.

That is the public simplification. My knowledge is that a broader remit is to keep inflation under control. If CPI were not so artificial and butchered, there might be half a chance that the two were the same. I have to admit that they seem more inclined to worry about CPI than real inflation.

Anyhow, I cant for the life of me see them raising.

Generali

According to the BoE, the "aim is to set interest rates so that inflation can be brought back to target [i.e. 2%] within a reasonable time period without creating undue instability in the economy...".

I would read that to mean that 2% CPI is the target but if CPI rises rapidly due to an exogenous shock (oil supply disruption caused by war in Iran?), the BoE isn't going to crucify the economy with 'excessive' rises in interest rates just to bring inflation down quickly.