Where are bank and intrest rates heading?

Toptom1

Can bank and intrest rates go any lower and where to? (Talk about negative intrest rates) or will they rise and if so a prediction on why and when.

sebtomato

Well, if there is deflation coming (negative inflation), then yes, the interest rates could drop to 0% or below.

However, the sharp recent decrease in inflation is mainly driven by oil price, and could be only short term, due to Opec trying to make oil exploitation in the US not profitable, but also hurting themselves at the same time.

getmore4less

The only way is up scaremongers will have a longer wait.

even if base rates don't drop there is downward pressure on rates on offer.

Before the base drop to 0.5% there were base - X% rates available we could end up there again.

Thrugelmir

Lending will never be at negative rates of interest.

Citibank are already charging interest for Euro's held in current accounts (commercial not consumer). So we are having to move cash continually across to Lloyds to avoid this.