Poll: Where do you expect Interest Rates to be in 2 years time?

mystic_trev

6.5-7.0%

The outcome of the latest Shadow Monetary Policy Committee (SMPC) monthly E-Mail Poll (carried out in conjunction with the Sunday Times) is set out below. The rate recommendations are made with respect to the Monetary Policy Committee’s (MPC’s) Bank Rate decision to be announced on Thursday 5 July.
On this occasion, seven SMPC members voted to raise Bank Rate by ¼% on 5 July, one wanted the shock therapy of a ½% increase, and one member voted for leaving rates unchanged, meaning that the ¼% increase won the day. Six SMPC members had a bias to raise rates further after July, however, while two of the ¼% hikers together with the one hold had a broadly neutral bias thereafter.

and it looks like we'll have 6% by the Autumn and maybe higher.

http://www.economicsuk.com/blog/000528.html#more

Melissa177

5.5% (Current Interest Rates)

Generali wrote: »

Excellent Melissa. Remember your brolly and wellies!

Sorry guys, I got "stuck" at Wimbledon (okay, enjoying the corporate hospitality, albeit in the rain) with my Belgians. We didn't leave until quite late, and I had another party to go to. Hope your GHPC Forum meet up went well.

Generali

6.5-7.0%

It was pretty good, I thought. I drank too much beer and fell asleep in the cab on the way home (driver wasn't that impressed). Shame not to meet you. Another time.

KingKenny

7.25% or higher

How times change, sentiment, yes?

Generali

6.5-7.0%

The shadow MPC reckons rates should rise too. One of them voted for +0.5%.

Turnbull2000

6.5-7.0%

Probably between 6.5-7%. If the MPC don't have the balls to do so for fear of damaging the property market, then the economy will be in far greater trouble than any house price crash will cause.

Inflation pressures should prevent them from foolishly cutting rates like they did in 2005 - which propelled housing inflation just as it was cooling off.

Melissa177

5.5% (Current Interest Rates)

Hmm - are they pre-empting next month's inflation report I wonder?

Turnbull2000

6.5-7.0%

I got the impression from a Newcastle Journal article that a heck of a lot of fixed rate mortgages are about to expire in this region. Salaries are below average up here, yet people have been taking on monumental mortgage debts over the past few year to keep up with the market when rates were around 4%. I wonder how much of an impact 6% plus will have?

A friend of mine who earns 20K, took out a 100K interest only mortgage two years ago. How much is an extra 2% on this?

Melissa177

5.5% (Current Interest Rates)

2K a year on an 100K interest only mortgage is a lot if you're only on 20K salary. Even more money if it's a repayment.

Turnbull2000

6.5-7.0%

Ouch! Hopefully he'll stop the relentless gloating about being on the housing ladder whilst I line a landlords pockets.