We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Base rate to rise in 2013?
Comments
-
Thrugelmir wrote: »Only 6 institutions have requested funds from the BOE under the funding for lending scheme. So doesn't appear to be a huge appetite from lenders to increase their mortgage lending books.
Is really any demand apart form a few hotspots?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
The economists predicting a possible rate rise in 2013 are describing what might be on the cards in a sane word where the overall long term benefit of the economy were the paramount consideration.
The world we live in however is one where the short term electoral prospects of the government is the paramount consideration. They are therefore likely to pursue policies of inflating away debt, chasing the yoof vote, and rewarding the profligate at the expense of the prudent.
Therefore I would agree that a rate rise in 2013 is fairly long odds.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
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.
So the UK will stand on the sidelines watching while the U.S. booms away. At least we've got our windmills to play with.
I dismiss an interest rise in the UK in 2013 out of hand as impossible.0 -
Base rate to rise in 2013?
No........................'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
So the UK will stand on the sidelines watching while the U.S. booms away.
The US won't boom away, they have too many demons to face up to. It's all smoke and mirrors with the can constantly kicked. Watch Freddie and fannie mac for one nightmare.
They won't raise interest rates, however if we are too recover it is what we need.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
The answer to this already was on the front page. FED keeps rates low till 2014, we are copying them so you know the weather is fine all next year :j
You have to be a radical now to believe central banks dont control the worth of money for years into the future and they said explicitly it'll be cheap for the benefit of businessRate rise 2013 go to the bookies I bet they
would give you long odd's
Interest rate swaps is big business. One simple bet would be to go buy Aussie dollars and sell Sterling to do so, no bookie required and you can keep the cash either way.
Their rates are lowest for years at 3.25% base I think
http://www.xe.com/currency/aud-australian-dollarSo the UK will stand on the sidelines watching while the U.S. booms away. At least we've got our windmills to play with.
I dismiss an interest rise in the UK in 2013 out of hand as impossible.
The USA is poorer then us by my reckoning. Nothing is impossible is the problem they are tackling, their actions were wanting certainty and profit and thats much closer to impossible
0 -
If they raised the interest rates In the US significantly then even more sub primers will go belly under, which could bring down more banks. Interest rates can't go up until the housing market in the US rises significantly to buffer those with a weak hand or until the banks can cover a significant loss themselves.
That's my read of it anyway. I reckon we'll not see the return of high interest rates for those reasons for many years to come. This will in turn compound a situation where new buyers and organisations expect tiny interest rates for years and compound the inability to raise the rates as we build more around a low interest rate future.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
If they raised the interest rates In the US significantly then even more sub primers will go belly under, which could bring down more banks. Interest rates can't go up until the housing market in the US rises significantly to buffer those with a weak hand or until the banks can cover a significant loss themselves.
That's my read of it anyway. I reckon we'll not see the return of high interest rates for those reasons for many years to come. This will in turn compound a situation where new buyers and organisations expect tiny interest rates for years and compound the inability to raise the rates as we build more around a low interest rate future.
I agree. Ultra-low rates are here to stay for a long time, regardless of the eventual consequences and damage it may cause. I wouldn't be surprised to see a new asset bubble emerging in a few years time.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
-
Phew! Thank goodness we have no vested interests exerting influence in the U.K. then.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.1K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards