We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
We're aware that some users are currently experiencing errors on the Forum. Our tech team is working to resolve the issue. Thanks for your patience.
MPC may raise Interest Rates to 6% in August!
Comments
-
.25 to 6% in September.
Also wouldn't bet against more, short-mid term.
Significantly 6% is here to stay for some time.anger, denial, acceptance
0 -
.25 to 6% in September.
Also wouldn't bet against more, short-mid term.
Significantly 6% is here to stay for some time.
Stories like this make me think that rates are going to be on the way back down before too long.WestLB AG, Germany's third-largest state bank, has no ``liquidity crisis,'' spokesman Hans Albers said, after a report about possible losses at its U.S. unit.
The banks have lent too much to too many and it is starting to look like they're in the brown stuff.
There are all sorts of nasty rumours around today apparently.0 -
.25 to 6% in September.
Also wouldn't bet against more, short-mid term.
Significantly 6% is here to stay for some time.
yeah, i'd agree with that. depends what one means by "some time". i think they will actually start cutting as early as january (from 6 per cent that is).
BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0 -
Stories like this make me think that rates are going to be on the way back down before too long.
The banks have lent too much to too many and it is starting to look like they're in the brown stuff.
There are all sorts of nasty rumours around today apparently.
I thought German banks were quite careful about their lending."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Apparently not.
It seems that banks don't even want to lend to each other right now. Dollar LIBOR and EURIBOR (the interbank lending rates for US$ and €) have both shot up. The ECB has had to step in and say that they will lend to anyone that asks at 4% (that means anyone in the market, they're not going to lend to you and me at that rate). The reason for this seems to be that nobody is certain that the bank they lend to will be there in the morning.
When I was banging on about not being able to borrow money if it all goes wrong in the mkts, this is what I meant. If the banks won't lend to each other, what chance will you have of borrowing more cash?
To clarify, this is still all within the bounds of what I understand to be normal but it is an example of what can happen.0 -
This is all looking like the way I've predicted it (just bought a place on a variable offset so it's slightly vested!)
I think the extra 0.25% rise is really touch and go, September seems certain to be a hold and if the BoE gets wind of any downturn in either house prices, retail sales, money supply figures etc. then they'll prolong that hold.
We are now exactly at the 2 year point when the cut to 4.5% was made which prompted so much remortgaging to fixed rates, so from here to the end of there is when all those on 2 year fixes will get hit with the higher rates. The BoE must assume this will dampen retail, service and housing demand in some way - which might be enough to counter-balance the inflationary aspect of high oil prices.
The Bank must also be mighty please by the lack of wage inflation going on.
My forecast:
Rates will be at 5.75%-6% at year end.
Then reductions of 0.25% in the first 6 months of 2008 and a further 0.25% later in 2008. So next year they'll either be 5.25% or 5.5%.0 -
You won't get 140-1 against a rate cut now I reckon! My bet is starting to look better and better each day.0
-
My forecast:
Rates will be at 5.75%-6% at year end.
Then reductions of 0.25% in the first 6 months of 2008 and a further 0.25% later in 2008. So next year they'll either be 5.25% or 5.5%.
Almost exactly what my bf was saying last night.Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson0 -
Melissa177 wrote: »Almost exactly what my bf was saying last night.
Yep, the variable rate deals lately have been excellent.
Those people fixing now on 5.9% or so for 2 or 3 years might regret it.0 -
free4440273 wrote: »still sticking to my guns - a .50 increase by november
Seems like the BoE is the only major central bank not pumping money into the system at the moment (after the ECB and Fed announcements). Perhaps the BofE really does mean it this time: no bail outs, and more (perhaps final) rate increase(s) - be it .25 or .50.BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards