I want interest rates to stay at rock bottom for ever

TheTracker

Hmm looks like a political thread not a savings and investment thread.

I can't help my heart wanting rates to stay low even though my head knows it'd probably be better for me, and everyone else, if they rose. There are more hearts than heads in the nation so I suppose that's why he said it.

colsten

Nothing political about it. Just reporting what HSBC said, and offering my opinion that 2016 might not be the end of waiting for interest rate rises.

Brilliant news for people with mortgages and loans, not so brillliant for savers (such as myself). And probably not brilliant overall as the root cause is painfully slow economical growth.

jimjames

colsten wrote: »

HSBC forecast no interest rate rises before 2016: http://www.telegraph.co.uk/finance/bank-of-england/11235420/Dont-expect-an-interest-rate-rise-until-2016.html

They could well be right, and even optimistic. May be we have to get ready for japanese rates.

Although I'm locking into fixed rates for new mortgage borrowing my existing mortgage is tracker and won't increase until rates have gone up by more than 1.5%. Proving very hard to guess when that will be but I suspect it is more than 2-3 years away.

Thrugelmir

TheTracker wrote: »

I can't help my heart wanting rates to stay low even though my head knows it'd probably be better for me, and everyone else, if they rose. There are more hearts than heads in the nation so I suppose that's why he said it.

Once upon a time Japan's banks ruled the world. Then the credit bubble burst. Causing Japan to remain to be locked in a hamster wheel of stagnation. UK bears somewhat similar hallmarks.

Glen_Clark

Thrugelmir wrote: »

Japan to remain to be locked in a hamster wheel of stagnation. UK bears somewhat similar hallmarks.

Stagnation is the least of Britain's worries. Debt is Britain's biggest problem - the elephant in the room that politicians would rather not talk about. The destruction of its industrial wealth creating capacity, coupled with pumping up house prices through debt (currently masquerading as 'growth') which is feeding through to housing benefit claims and increasing the debt still further.
Its one hell of a lot easier to print money and borrow, than it is to make things we can sell abroad so as to pay it back.

JohnRo

Just allow the capital city to become the money laundering hub of the world. Hey presto, growth...