Interest rates could start to rise soon - Andrew Sentance

DervProf

HAMISH_MCTAVISH wrote: »

Had you sold your house and bought silver a year ago, you could buy back less than half a house today.

Good job I didn't then, isn't it ?

Mind you, if I had, it would appear that you would take pleasure from the fact.

brit1234

BOE may have to raise rates to save what ever credibility they have left. After all the banks have now started to ignore them putting up mortgage and saving rates, BOE members have resined (interest rate dove) and inflation goes ever up despite Mervin every year saying it will fall.

Mrs_Bones

Question - Interests rates are now at a record low and have been for one of the longest periods in history, yet people are still struggling. We have already chucked billions of pounds of QE in to the system for what seems minimal benefit. So what is going to happen when the Euro does explode? They seem to already have used most of the tricks in the financial bag with very little extra room left to maneuver now.

HAMISH_MCTAVISH

Mrs_Bones wrote: »

Question - Interests rates are now at a record low and have been for one of the longest periods in history,

Nowhere near the longest.

After the last global financial crisis, interest rates went to record lows and stayed there for nearly 20 years.

yet people are still struggling.

Because there is little growth, hence little job creation, hence no pressure on wages to keep up.

We have already chucked billions of pounds of QE in to the system for what seems minimal benefit.

Minimal benefit compared to what? The situation without QE could have been far, far worse.

So what is going to happen when the Euro does explode? They seem to already have used most of the tricks in the financial bag with very little extra room left to maneuver now.

And what if the Euro doesn't explode?

Sampong

Interest rates can only go one way (unless they stay the same). Well actually that is not entirely true, they could push them to 0.25% I guess but I imagine the more likely outcome is that they will rise.

I watched a Moneyweek video the other day (admittedly it was a sales pitch for Moneyweek) that mentioned that Mervyn King said that interest rates could start rising as soon as May (2012).

IveSeenTheLight

GeneHunt wrote: »

Interest rates could start to rise soon - Andrew Sentance
http://www.telegraph.co.uk/finance/economics/9218565/Interest-rates-could-start-to-rise-soon-Andrew-Sentance.html

Wasn't he saying this when he was in a more prominant position to do something about it with little effect.

kabayiri

HAMISH_MCTAVISH wrote: »

...
Not exactly stable or safe investments...... Particularly given the yield is zero.

So they are not right for you. But don't you respect people's right to choose for themselves?

Everyone is entitled to make a punt on something, and if it works out great, if not then move on.

I lost out on balance with dotcom stocks in the dotcom boom. Such is life. It doesn't mean technology stocks don't work out for others.

I suspect any investment other than property threatens your view of the world.

Generali

GeneHunt wrote: »

I think they'll start rising soon....as the inflation rate is bound to start rising further from the rise in the oil price (and the VAT effect has now gone....).

Interest rates are unlikely to rise because the oil price does. Higher oil prices act like a tax by a foreign country on the UK now she is no longer a net exporter which has the same effect on the wider economy as increasing interest rates.

The_White_Horse

i think that what you are all forgetting is that if you just ignore the price of everything that has gone up, there is no inflation. That is BOE thinking.

FTBFun

kabayiri wrote: »

So they are not right for you. But don't you respect people's right to choose for themselves?

Everyone is entitled to make a punt on something, and if it works out great, if not then move on.

I lost out on balance with dotcom stocks in the dotcom boom. Such is life. It doesn't mean technology stocks don't work out for others.

I suspect any investment other than property threatens your view of the world.

I would think the best approach is to have a balanced investment strategy where the risk is spread out.

Unfortunately too many people here go for the "invest all your money in precious metals/property/magic pixie dust" approach.