Base rate to rise in 2013?

vivatifosi

http://www.telegraph.co.uk/finance/economics/9763127/Pressure-increases-for-UK-interest-rate-rise-in-2013.html

Interesting article in the Telegraph. It's packed full of sources - lots of VI too though.

Looks like we could be in for a rates rise late next year. Sorry, can't write up more than this at mo as have to go to work:(.

Thrugelmir

What do the majority think?

Although still in the minority, a handful of leading experts believe the Bank will come under pressure to raise rates towards the end of 2013

moneyinmypocket

There will be no base rate rises untill the country is in full recovery and stable again - IMO we won't see any rises untill towards the end of the decade

buglawton

If UK salaries an property prices were to start running away into the distance, then yes.

So, no.

Generali

It's possible. Simplistically, the world's economy is based around supplying American consumers with the things that they want to buy. It is quite that the US economy is going to get a lot better very quickly: fracking has opened up a very cheap source of energy that opens up the chance for a lot of American companies to bring production back on shore. The problems in the US housing market are a long way towards being resolved and the banks are in better shape than at any point since 2007.

I can see how the US consumer could pull all of us out of the mire. It's not a certainty but only a fool would dismiss it out of hand as impossible.

Thrugelmir

Generali wrote: »

fracking has opened up a very cheap source of energy that opens up the chance for a lot of American companies to bring production back on shore.

Labour is cheaper in Mexico.

Graham_Devon

Not sure. It's all a bit of a guessing game. I reckon the only thing that is for certain is that all these predictions will prove to be worthless. Much like the predictions in 2007 of higher interest rates.

Things radically change.

Certainly doesn't sound like there will be any pressure to raise rates by the incoming governor anyway.

Generali

Thrugelmir wrote: »

Labour is cheaper in Mexico.

And less productive.

Thrugelmir

Generali wrote: »

And less productive.

Though some manufacturing has been transferred back from China.

PaulF81

I think the economists involved are confusing what they want to happen with economic reality. I bet a fair few pensioners will be banging their cash into more bonds after reading this too. All good as the return of wealth is returning from the cash rich to the cash poor built asset rich.

Wookster

Predicting economic events is a mugs game. All it takes is for a small Black Swan event to throw conventional wisdom out of the window.