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Interest rate rises likely to start from Spring 2015

13567

Comments

  • PaulF81
    PaulF81 Posts: 1,727 Forumite
    They are the new normal.
  • MrRee_2
    MrRee_2 Posts: 2,389 Forumite
    Watch my lips ..... current Interest Rates ARE, repeat ARE, the new normal ........... some people are struggling with this fact.

    Long term average Interest Rates of 5% means absolutely nothing, nothing at all except in the history books.

    Governments, the people, companies, cannot cope with higher interest rates anymore ............... we are in a new world, a new dawn - it's about time for a new reality across these forums.
    Bringing Happiness where there is Gloom!
  • coastline
    coastline Posts: 1,662 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The link between base rates and inflation was broken in 2008...the chart shows the relationship over 60 years.
    Rates were used as a buffer against inflation so I'm guessing within 5 years the link will be restored...subject to world growth.

    http://proprateanalyst.files.wordpress.com/2010/06/rpi-base-rate1.jpg
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
    Does any body think that the assumed Tariff income based at 23% per year from any capital above a threshold will change with an increased bank rate?

    I wish those virtual returns were achievable by the fit and able,financially savvy from those in the treasury but they are the penalty rate for having savings above the threshold, deemed to be suitable, for those who have to make a benefits claim.

    J_B.
    Funny money rules.
  • Thrugelmir wrote: »
    Gradual path towards 3.5% - 4% seems to be current view.

    With overrall indebtedness going to take decades to wean people off the debt addiction.

    Are people really not going to use debt, in the future, to finance their wants?

    Are credit cards going to become a thing of the past taking us back to the good old days of hire purchase.

    Just how will all the new gizmos, that capitalism must convince us we need, be financed?
    "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 Muruganantham
  • Thrugelmir wrote: »
    People seem to believe that interest rates at these levels are normal!

    They are normal until abnormal things happen and reactions are forced.
    "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 Muruganantham
  • PaulF81
    PaulF81 Posts: 1,727 Forumite
    Inflation can be controlled more intelligently than the blunt use of interest rates which can have unintended secondary effects, such as crashing the housing market.
  • MFW_ASAP
    MFW_ASAP Posts: 1,458 Forumite
    Bantex wrote: »
    Don't remember saying that, but it does sound basically sound though.

    Only to you, shortchanged, only to you. :rotfl:

    By the way, why have you created yet another username? Don't you have enough with 'shortchanged', 'renovationwoman', 'aberdeenangarse' and let's not forget the saddest of them all, your thank buddy 're-wired'?

    Do you really care so much about a small, insignificant forum that you're willing to put that sort of effort in? Deary me. :o
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    MrRee wrote: »
    Watch my lips ..... current Interest Rates ARE, repeat ARE, the new normal ........... some people are struggling with this fact.

    Long term average Interest Rates of 5% means absolutely nothing, nothing at all except in the history books.

    Governments, the people, companies, cannot cope with higher interest rates anymore ............... we are in a new world, a new dawn - it's about time for a new reality across these forums.

    A new paradigm?

    If one thing experience has taught me, such categorical declarations should be avoided. They may come back to bite you;)
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • MrRee_2
    MrRee_2 Posts: 2,389 Forumite
    I've lived too long to be wrong now ..................... sounds like the opening words of a song!
    Bringing Happiness where there is Gloom!
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