What are interest rates likely to do?

meanmachine_2

shaymenRup wrote: »

How funny is this thread. Who'd be in the futures market eh?

Interest rates 6% wrong
Oil $70 a barrell try doubling that!!

Huh?

First, I say it's pointless predicting, then I say if oil goes above 70 dollars then you will see rates rise.

To be honest, base rates *should* be at 6 per cent right now - luckily the money markets agree with me, which is why libor and swap rates are close to 10 year highs.

I can't help it if the BOE are spineless nothings.

shaymenRup

Mean machine I wasn't having a go, just laughing about how wrong we could be throughout the whole thread.

I don't think anyone would have predicted oil at $140 a barrell. I agree with the BOE rate, but I'm glad as I'm on a variable deal.

sgrahams

I was all set to proceed with a 2 year fix at about 6%.. reading Wednesdays Daily Mail.. they asked a number of financial bod's ALL estimated rates would be about 4.75 to 5.00 by end of year.

Perhaps someone here can confirm these figures?

beecher

sgrahams wrote: »

I was all set to proceed with a 2 year fix at about 6%.. reading Wednesdays Daily Mail.. they asked a number of financial bod's ALL estimated rates would be about 4.75 to 5.00 by end of year.

Perhaps someone here can confirm these figures?

Sounds rubbish to me - rates are going up not down in my opinion and if you can fix at 6% I'd take it and be inclined to fix for at least 3 years. Even if BoE rates did go down, bank mortgage rates wouldn't follow.

mitchaa

meanmachine wrote: »

Huh?

First, I say it's pointless predicting, then I say if oil goes above 70 dollars then you will see rates rise.

You are aware it costs around $140 just now?

foreversummer

For what it is worth . . . . .

What is very rarely mentioned on this board is that any move upwards in interest rates is very likely to tip us into a recession, if we are not already in one. The BoE do not want to do this.

However, inflation is a great risk, and I doubt that there will be any rise in interest rates this year, although they may feel it necessary to make two 0.25% increases at some point before they start to fall again to boost the economy which will have slowed greatly.

I don't think we are like to see interest rates at low as they have been in the past, but I do think that we will see them again at 4.5% within the next couple of years.

elementelement

I second the above,

my 2p worth is ......crystal ball moment......

the vast majority of the uk population are simply......in to much debt

BOE puts up intrest rates.......... bankruptcy increases which has a knock on effect with the economy in general and affects the bank lenders pushing there rates up to try and buffer the default (assuming auction of the property dosn't cover all debt)......... this has the potential to spiral out of control.

BOE lowers rates..... Inflation goes through the roof and people can't afford to do the basic things in life (assuming wages don't go up inline)...... this has the potential to spiral out of control.

so what do you do? damned if you do damned if you don't

If i was the bank of england i'd be having a few well said words with the banks and the powers that be. (the money the goverment bailed out the banks with) ......

force the banks to drop long term fixed rates down to around BOE 5% encourage everyone to sign up (make it clear your'e about to deal with inflation) the increase the % to stave it off.

but would it happen in real life?........ simply no, people are to greedy
In reality the BOE will probably hold tight and ride it out, minor changes 1 way or the other and some other measures will be brought in to deal with it......

possible tax increase



** im a total novice who just watches the market and news, do not take any of the above as a guide of any kind**

Rabiddog_2

the vast majority of the uk population are simply......in to much debt

And this is backed up by ?? Hot air? Pub anecdotes? the Hair on your Chinny chin chin??

Asking a question like this (IMHO) you get answers that are basically what people would like to happen, mixed in with a bit of reality.
Oil price in a years time? $110 ...

boat_girl

mitchaa wrote: »

You are aware it costs around $140 just now?

The original thread was started well over a year ago, as was mean machines reply. At the time that was the price of oil.

meanmachine_2

Unfortunately I'm not paid to make rubbish predictions that don't come true.

Unlike numpties such as Roger Bootle and that vile Henk Potts bloke.

Shame. I could do just as good/bad a job as them!!