Interest Rate stable is good news for me

ps_live

I was reading with interest the bbc article yesterday that explained why interest rates had stayed at 4.75%. It goes on to explain that "experts" actually think it may have peaked.

This is great news for me, as I'll be looking in December for a better deal (4.99% fixed deal runs out in March '06). With a bit of luck, interest rates will have actually fallen again by December.

Fingers crossed :j

Pete

Fairdo_2

Fingers crossed for you too.

lisyloo

Be careful what you wish for !!

Interest rates didn't rise because there is a significant slowdown in the housing market, manufacturing and retail sectors.

I don't know what you do for a living but stable rates won't help you if you lose your job.

We're all doomed I tell ya, we're all doomed ............................

Seriously I think there is a risk of recession and job losses.

dougk_2

To me there are big reasons why retail sales have dropped - certainly on the high street.

The method we are using now (the internet) means we all have new oppourtunities to get discount prices. For instance I never buy CD's or DVD's from a shop because I can get them cheaper online (cd-wow, play, amazon etc).

I people are finally realising how the high street retailers cannot compete (or will not compete). Why pay more to drive and collect something when you can get it brought to you for less?

lisyloo

Why pay more to drive and collect something when you can get it brought to you for less?

I agree Doug, but what I'm pointing out is that there are consequences.
That decision (across the population) might mean someone in retail losing their job and hence having difficulties paying their mortgage.

Hence my comment about be careful what you wish for.
Low interest rates are great and so are internet prices but you might feel differently if it was YOUR job.

The slowdown is not only in the retail sector.
Manufacturing have just turned out terrible figures, transactions in the housing market are the lowest since 1995 (source : Land registry).
I have also heard anecdotal evidence that car showrooms are dead.

If it continues then there are bound to be redundancies to follow, it's inevitable.
Marconi, IBM, Rover and Abbey are all sheeding jobs and several of those are in the thousands.

If people lose their jobs then that make less money available for high st spending and buying cars etc, which obviously affects those industried even more.
Can you see the possibility of a vicious circle which can cause recession?

I can see the possibility of it starting to emerge.

Yes low interest rates are great, but it makes no odds if your house is being repossesed.

Of course as you are all savy people on here, then I'm sure you've got yourselves insured against sure events.........haven't you?