Worried about higher interest rates?

Thrugelmir

Graham_Devon wrote: »

Commentator on the radio today suggested Mark Carney will now switch tack again, and suggest rates won't rise in the near future due to lower than expected inflation and EU worries.... we'll see I guess in a couple of weeks or so.

Goes hand in hand with George Osbournes announcement today suggesting were heading for round 2.

Amusing today either way. It was all about China consuming too much and polluting too much a couple of years ago. Now were wallowing in misery over our future due to China not producing enough and the world not using enough oil.

That's not what the thread is about. It's about how people will cope with a rise in interest rates.

wotsthat

Graham_Devon wrote: »

Commentator on the radio today suggested Mark Carney will now switch tack again, and suggest rates won't rise in the near future due to lower than expected inflation and EU worries.... we'll see I guess in a couple of weeks or so.

Goes hand in hand with George Osbournes announcement today suggesting were heading for round 2.

I can't even see why interest rate rises are on the agenda. Where's the inflation? Where's the wage growth? What's the driver for these to increase in the medium term?

I've got everything fixed now just to be on the safe side. The march towards rate rises seems to be building it's own momentum.

Can't complain. There will be a 10 year period when I've averaged sub 2.5% on my mortgage. I would have laughed in your face in the nineties if that had been proposed as a realistic possibility

michaels

Who would have thought fixing at 2.5% for 5 years would turn out to be a mistake

chucknorris

wotsthat wrote: »

I can't even see why interest rate rises are on the agenda. Where's the inflation? Where's the wage growth? What's the driver for these to increase in the medium term?

I've got everything fixed now just to be on the safe side. The march towards rate rises seems to be building it's own momentum.

Can't complain. There will be a 10 year period when I've averaged sub 2.5% on my mortgage. I would have laughed in your face in the nineties if that had been proposed as a realistic possibility

With the current concern over Europe's and specifically Germany's economy it looks like interest rate rises are a bit further away than we thought a couple of weeks ago. Even when they do eventually go back up, the new norm may become 3-4% rather than 5-6%.

MFW_ASAP

chucknorris wrote: »

With the current concern over Europe's and specifically Germany's economy it looks like interest rate rises are a bit further away than we thought a couple of weeks ago. Even when they do eventually go back up, the new norm may become 3-4% rather than 5-6%.

Great for people who had the balls to borrow heavily and buy their dream home.

shortchanged_2

wotsthat wrote: »

I can't even see why interest rate rises are on the agenda. Where's the inflation? Where's the wage growth? What's the driver for these to increase in the medium term?

I've got everything fixed now just to be on the safe side. The march towards rate rises seems to be building it's own momentum.

Can't complain. There will be a 10 year period when I've averaged sub 2.5% on my mortgage. I would have laughed in your face in the nineties if that had been proposed as a realistic possibility

Probably because the BoE is realising the risk of a debt fuelled recovery.

wotsthat

shortchanged wrote: »

Probably because the BoE is realising the risk of a debt fuelled recovery.

Do you think? On another thread you're saying there's a new financial crisis looming. So no inflation, no wage growth and a non existent recovery.

Thrugelmir

wotsthat wrote: »

Do you think? On another thread you're saying there's a new financial crisis looming. So no inflation, no wage growth and a non existent recovery.

Governments haven't tackled debt (in the broadest sense) in a proper manner. Instead hoping that growth is going to magically cure all the ills. The assault on payday lenders is going to tackle another aspect of lenders behaviour after mortgages. Be interesting to see how credit cards are addressed. Nor are Governments tackling budget deficits. France today was downgraded to a negative rating. Along with Italy , France requires fundamental reform to address the budget deficits. .

wotsthat

Thrugelmir wrote: »

Governments haven't tackled debt (in the broadest sense) in a proper manner. Instead hoping that growth is going to magically cure all the ills. The assault on payday lenders is going to tackle another aspect of lenders behaviour after mortgages. Be interesting to see how credit cards are addressed. Nor are Governments tackling budget deficits. France today was downgraded to a negative rating. Along with Italy , France requires fundamental reform to address the budget deficits. .

Sounds like a case for more QE than rising interest rates.

I can't see governments reducing debts until people stop lending them money. Maybe higher interest rates would deter them but that would require turkeys to vote for Christmas.

Thrugelmir

wotsthat wrote: »

I can't see governments reducing debts until people stop lending them money.

Will people lend enough to fund the budgetry spend though?