I want interest rates to stay at rock bottom for ever

SW17

colsten wrote: »

I am a pensioner too, and would love to see better interest rates, from a purely selfish point of view. However, pensioners aren't the only people in the country and many younger people, including all the the mortgage owners, wouldn't call the present interest rates a disgrace. We also have inflation rates at very low levels, and on balance, I'd rather get a little less interest than see galloping inflation and repossessions.

Sure, my comment was more about the fact that he is likely to say the exact opposite of what he said in this case when confronted by a group with an opposing opinion, especially a group that is electorally significant.

Of course, as Glen Clark pointed out, the official inflation figures don't tell the whole story (not getting political, govts of all hues do the same thing, God knows how many times the official measure of unemployment has changed over the last 3 decades).

melbury

How very selfish of David Cameron to say that:eek::eek:

What about the savers who have been struggling for years?

jimjames

melbury wrote: »

How very selfish of David Cameron to say that:eek::eek:

What about the savers who have been struggling for years?

Hopefully the possibility of low interest rates for an indefinite period might spur some to look at other options. Keeping hundreds of thousands as cash when there is no requirement to spend it and income is a priority is just crazy when you can get far better income with a more diversified portfolio.

colsten

Glen_Clark wrote: »

We already have galloping inflation, but the Government Statistics don't show it because they ignore housing costs.

Well, my mortgage has been paid off years ago, and my personal inflation is not higher than the official figures. But if we take your argument, then interest rates should definitely stay low so people can afford housing.

Thrugelmir

lalman wrote: »

Low interest rates mean high asset prices.

Not in the longer term.

Thrugelmir

colsten wrote: »

But if we take your argument, then interest rates should definitely stay low so people can afford housing.

With the counterweight being that as rates very slowly rise. Property prices will correspondingly fall. Neutralising the situation.

With the economy in the state it is. A moribund housing market would tip matters back into recession.

kidmugsy

Little as I like Mr Cameron, I can't bear the idiots who complain that he didn't carry out his promises made at the last election. Those promises were predicated on his winning the election and forming a Conservative government. He didn't so he didn't. It's a coalition. Much the same applies to many common criticisms of Mr Clegg.

And if there's no majority government next time, it will apply also to (say) Mr Moribund.

SW17

kidmugsy wrote: »

Little as I like Mr Cameron, I can't bear the idiots who complain that he didn't carry out his promises made at the last election. Those promises were predicated on his winning the election and forming a Conservative government. He didn't so he didn't. It's a coalition. Much the same applies to many common criticisms of Mr Clegg.

And if there's no majority government next time, it will apply also to (say) Mr Moribund.

True, but also easy to use this as the reason for every abandoned promise, whether true or not. We would never know.

And on that subject, this time round they should all tell us which manifesto promises they would be prepared to abandon in coalition (let's face it, there are a limited number of possible combinations of parties who could form coalition).

Thrugelmir

beancurd wrote: »

If inflation comes with the interest rates, then the net effect if reflected in more wages will be effectively cheaper housing.

Inflation does not create wage growth. Output and productivity do. Neither of which property investment contributes to.

sabretoothtigger

After 90 years, HMG apparently is to finally redeem 1927 debt issued by Churchill . I think thats your biggest clue 3.5% is now seen as high rate and for a long time

http://www.ft.com/cms/s/0/94653f60-60e8-11e4-894b-00144feabdc0.html