Surely saving rates must go up.....or not?

lalman

I have a weird feeling that rates won't go up for a while yet - even if there is a boom in property as with most central banks they react to slowly to curb the boom in prices...

What i suspect is we dont see rates rise till 2016 at the earliest - prior to that we might even see the reversal of some of the QE/ increased deposit ratio's... but i suspect whats even more likely is QE will stop in the USA and we will see some shocks in the world economy that illustrate how the fundamentals are still weak.

Glen_Clark

thor wrote: »

I'm guessing at some point they will use up whatever money they had hoarded from the public coffers.

When the banks lend out money on a mortgage, the money is paid to the seller who most likely puts it back in the bank. So this £375billion of freshly printed funny money keeps flying round pumping up asset prices like a dog chasing its tail. Stopping the printing presses doesn't stop QE. They would have to sell £375 billion of bonds and burn the cash just to get back to where we were before they started.

Glen_Clark

lalman wrote: »

central banks they react to slowly to curb the boom in prices....

Politicians say one thing and do another. They are doing nothing to curb the boom in prices. Everything they do increases it.

talexuser

Glen_Clark wrote: »

They are doing nothing to curb the boom in prices. Everything they do increases it.

...until the next election, the only time scale that matters!