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BoE warns of risks of rate rises.
Comments
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The BOE is just stating the outright obvious, and several on here are doing all they can to ignore it.
Kudo's shortchanged, you couldn't have got a better article to state what we all know and what has been denied on here for so long. Unfortunately though, you can't break a cycle of ignorance.
Everything will just be fine. They will just work more - just like that. I'm sure if it was as easy as that, all those wanting more work would already be doing more!0 -
Graham_Devon wrote: »The BOE is just stating the outright obvious, and several on here are doing all they can to ignore it.
Kudo's shortchanged, you couldn't have got a better article to state what we all know and what has been denied on here for so long. Unfortunately though, you can't break a cycle of ignorance.
Everything will just be fine. They will just work more - just like that. I'm sure if it was as easy as that, all those wanting more work would already be doing more!
There will obviously be people who default if interest rates rise but most people cope.
What does the article say if rates rise 2 points 20% of people will have to take action so 80% won't of those that do a large percentage will be able to take action. When it comes to the crunch people will prioritise there mortgage above most things. I know because I have had to do it myself in the past.
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There will obviously be people who default if interest rates rise but most people cope.
What does the article say if rates rise 2 points 20% of people will have to take action so 80% won't of those that do a large percentage will be able to take action. When it comes to the crunch people will prioritise there mortgage above most things. I know because I have had to do it myself in the past.
Will prioritising spend away from consumption depress the economy?"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 -
grizzly1911 wrote: »Will prioritising spend away from consumption depress the economy?
Good chance but what % of people will really struggle and will interest rates increase if economy still in downturn.0 -
Good chance but what % of people will really struggle and will interest rates increase if economy still in downturn.
They may have to. We've started seeing signs of pressures which could (not saying they will) see interest rates having to rise.
They can't just keep them low regardless of all other pressures just because the economy isn't growing at a preferred rate.
At the moment they can....but that doesn't necessarily mean rates will always stay low regardless of all other costs associated with that forevermore.
The key point shortchanged was making is that when interest rates rise, people will struggle. This has long been denied on here. You are trying to do that now by suggesting only 20% will struggle, therefore it's somehow OK.
20% struggling and having to take action if rates hit 2.5% doesn't seem OK to me. It sounds very worrying. 2.5% is still historically at the extremes of low.0 -
Graham_Devon wrote: »They may have to. We've started seeing signs of pressures which could (not saying they will) see interest rates having to rise.
They can't just keep them low regardless of all other pressures just because the economy isn't growing at a preferred rate.
At the moment they can....but that doesn't necessarily mean rates will always stay low regardless of all other costs associated with that forevermore.
The key point shortchanged was making is that when interest rates rise, people will struggle. This has long been denied on here. You are trying to do that now by suggesting only 20% will struggle, therefore it's somehow OK.
20% struggling and having to take action if rates hit 2.5% doesn't seem OK to me. It sounds very worrying. 2.5% is still historically at the extremes of low.
That's what the article says I have no idea what the numbers are but there is a difference between struggling and defaulting.0 -
Graham_Devon wrote: »The BOE is just stating the outright obvious, and several on here are doing all they can to ignore it.
Kudo's shortchanged, you couldn't have got a better article to state what we all know and what has been denied on here for so long. Unfortunately though, you can't break a cycle of ignorance.
Everything will just be fine. They will just work more - just like that. I'm sure if it was as easy as that, all those wanting more work would already be doing more!
Not sure anyone's ignoring anything TBH. The risk of rate rises still seems low and even the BoE don't know if their concerns are justified which is why lenders themselves have to report.
As I read the financial stability report it seemed that the concern was with 'abrupt' rises which give people little time to adapt rather than the rises per se.
You should know by now that if rising rates would lay waste to mortgage holders with the subsequent damage it would cause to banks then they won't go up. Mervyn King thinks we're nowhere near getting normal rates anytime soon. The 'worriers' have been telling us that Carney isn't one for higher rates anyway.0 -
Graham_Devon wrote: »The key point shortchanged was making is that when interest rates rise, people will struggle. This has long been denied on here. You are trying to do that now by suggesting only 20% will struggle, therefore it's somehow OK.
20% struggling and having to take action if rates hit 2.5% doesn't seem OK to me. It sounds very worrying. 2.5% is still historically at the extremes of low.
Struggling isn't the word used in the article.
They said 20% would need to take action - find more money or cut back.0 -
Struggling isn't the word used in the article.
They said 20% would need to take action - find more money or cut back.
Yer - wouldn't that imply they would struggle otherwise? :undecided
They wouldn't have to "find" extra money or cut back elsewhere if they didn't struggle to meet mortgage commitments!0 -
Not sure anyone's ignoring anything TBH. The risk of rate rises still seems low and even the BoE don't know if their concerns are justified which is why lenders themselves have to report.
As I read the financial stability report it seemed that the concern was with 'abrupt' rises which give people little time to adapt rather than the rises per se.
You should know by now that if rising rates would lay waste to mortgage holders with the subsequent damage it would cause to banks then they won't go up. Mervyn King thinks we're nowhere near getting normal rates anytime soon. The 'worriers' have been telling us that Carney isn't one for higher rates anyway.
Which is fine. But the point of the article is to show the problems that would arise should rates rise.
You can dismiss them by saying they won't rise.... but that doesn't really dismiss the findings of the article. It just dismisses the whole point of the article based on the assumption or hope that everything carries on as it is and rates are not forced up.0
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