Halifax April 2014 - 0.2% MoM + 8.5% YoY

chucknorris

Generali wrote: »

Ha ha, no. I don't mean this afternoon.

The BoE will start to increase rates when the Fed increases theirs unless something changes. I expect that to be in about a year, maybe slightly less (end of Q1 2015).

Interest rates will rise at some point. They won't stay at 50bps forever.

Yeah I was only joking.


I can't complain I was hoping for 3 years when they first reduced the base rate, so it has been a great run, which as you say can't go on forever, but what would be nice would be if the new 'norm' became 3-4% (ish) for a while.

chucknorris

Bantex wrote: »

Bung rates up now to 5% just as a warning to stop people becoming complacent. Could bring them down again next month.

Great idea! We could also nuke Moscow to warn Russia not to carry on interfering in Ukraine. Pass the sledge hammer I want to crack open a nut.

Bantex_2

Worries me that there are now a whole bunch of people coming up to house buying age (mid to late 20s) who have seen .5% IRs their whole adult life and actually find it hard to believe that rates will ever go up. Comments such as "they could not increase as it would cause repos" are very common.

chucknorris

Bantex wrote: »

Worries me that there are now a whole bunch of people coming up to house buying age (mid to late 20s) who have seen .5% IRs their whole adult life and actually find it hard to believe that rates will ever go up. Comments such as "they could not increase as it would cause repos" are very common.

Sensible people will realize that they are taking on a 25 year liability (OK I know many people might sell well before then). The problem is that no matter how you try to protect fools, it just doesn't work. Nothing wrong with education though, I'm sure many are capable of taking advice.

chucknorris

Bantex wrote: »

Just a month wouldn't trash the economy.

Could you give me some warning, so that I could get out of the ftse before they do it.

Generali

Bantex wrote: »

Just a month wouldn't trash the economy.

Yes it would. Investors and banks across the world would imagine that the MPC/entire British financial system had gone completely mental and would take every last cent out of the country.

Asset prices would crash and food imports would collapse (the UK produces about 1/3rd of the food it eats). You'd starve but if you had enough beans in your cupboard then you might be able to buy a cheap house in a few months from someone who wasn't so lucky.

ruggedtoast

Generali wrote: »

The Quarter on Quarter measure, their preferred is up 2.3% which is pushing 10%, annualised.

It'll be interesting to see what happens when interest rates rise.

Thats not going to happen any time soon. Is it? :think:

Generali

ruggedtoast wrote: »

Thats not going to happen any time soon. Is it? :think:

Within 12 months is my guess. It'll be a slow and erratic process I suspect.

chucky

mayonnaise wrote: »

Quite a bubble.

Graham_Devon wrote: »

Good.

It's also good that I didn't have to wait too long to say good. Good.

Generali wrote: »

The Quarter on Quarter measure, their preferred is up 2.3% which is pushing 10%, annualised

You just couldn't make it up...

Graham obviously doesn't get how it works...

MrRee_2

There is no way on earth that Interest Rates will ever get above 2% Base within 20 years.

As stated above, there is a generation who think that 0.5% IR's is normal .... and maybe it IS now!

I have seen 15% IR's and the suffering involved in that ... the fact is that money is, and will be for decades, extremely cheap.