Help to buy has to go

cepheus

• help to buy has to go, no brainer, made debt problems so much worse
• interest rates can't rise enough to rebalance economy!

According to chair of Money policy forum hosted by Fathom Consulting later today.

http://www.fathom-consulting.com/Contactus/Previousevents/2013-11-28/2014-Q1-Monetary-Policy-Forum/

On Today programme, go to 23 minutes

http://www.bbc.co.uk/programmes/b03trrht

cepheus

Interest rates could rise this year as economy picks up, warns Bank of England ex-deputy governor

By Huge Duncan Economics Correspondent

The Bank of England could be forced to raise interest rates before the end of the year as the economy picks up pace, a former deputy governor warned yesterday.


Sir John Gieve said the central bank should start to ‘normalise’ rates soon having held them at an ‘emergency’ low of 0.5 per cent for five years.

‘I think there is a good chance that we will see the first rate rise before the end of the year,’ he said at the Fathom Consulting Monetary Policy Forum in London.


Read more: http://www.thisismoney.co.uk/money/news/article-2556723/Former-Bank-England-deputy-governor-Gieve-says-rates-rise-year-economy-picks-up.html#ixzz2t28zGXFb

AndyGuil

Depends on inflation. Where will it be next year? Currently it is on target and the trend has been downwards. This can of course change.

CLAPTON

generally it is wage inflation or home grown inflation that determines changes in interest rates

PaulF81

Lots of extra oil supply coming on line over the next 5 years. Going to put a bit of a dampener on energy prices. Still don't buy rates over 2% in the next 4 years. Any rise will. Be to placate the rabbid, daily mail reading frothers who continue to b@tch about their money not working for them sat lazily in the bank.

Get out and invest in the ftse100 or 250 if you want a return you berks!

cepheus

If QA is finishing perhaps they have missed the boat?

Thrugelmir

cepheus wrote: »

The Bank of England could be forced to raise interest rates before the end of the year as the economy picks up pace, a former deputy governor warned yesterday.

Would a .25% rise really be that bad?

Would have thought you would welcome the start of return to normality.

moneyinmypocket

I say keep it and pump up the jam pump up the jam

cepheus

You mean pump up the rates and punish those who have borrowed irresponsibly? Politically that's unlikely to happen.

Thrugelmir

cepheus wrote: »

You mean pump up the rates and punish those who have borrowed irresponsibly? Politically that's unlikely to happen.

Western Governments, Consumers and Corporates? A sure way of killing off any recovery.

Debt is cultural. Keynesian economics may be at the end of the road. Not that he endorsed "intentional" inflation as a long term measure to reduce the burden of Government debt.

antrobus

cepheus wrote: »

• help to buy has to go, no brainer, made debt problems so much worse

....

In what way has HTB (whatever version) made "debt problems so much worse"?