Carney's comments on interest rates

incandescent

The rate on my cash ISA is due to be reduced in just over a month so I've been considering transferring it to a one year fixed rate ISA to try to get a slightly better rate.

But with Mark Carney's comments that the BoE might increase the base interest rate towards the end of the year I'm not so sure.

Would I be correct in assuming that (a) it probably won't happen (b) if it does it will likely only be a 0.25% rise and (c) it would be a long while before savings rates reflected the rise?

Thanks.

dunstonh

It should be noted that interest rates have been rising later this year for a number of years now but hasnt happened. So, its no guarantee. Whatever happens, any rates are going to be slow and low.

polymaff

incandescent wrote: »

But with Mark Carney's comments that the BoE might increase the base interest rate towards the end of the year I'm not so sure.

It'll be news when Carney doesn't say that each month. Note his other insight this week, that we are getting closer to the time when interest rates will rise.

Cor'

caper7

I was about to open the Coventry 2.4% ISA and am now unsure whether this is the best plan.
Finally Carney says something I want to hear and manages to disrupt my plans!

talexuser

We've been hearing about interest rate rises for many years by now. So far it was just flim-flam to keep savers happy they are losing out to keep bankrupt banks in business and bonuses. Rates will go up very slightly eventually, but as long as the recovery is on life support of low rates/QE we are stuck with where we are.

longleggedhair

I remember when I took out a five year fix for my maturing isas in 2011 at 4.7% and almost didn't because interest rtes where going to rise "soon" thankfully I took the rate. Do what is best for you now as trying to guess when they will rise is impossible.

kidmugsy

Mr Carney knows no more than I do about when interest rates will rise.

xylophone

that we are getting closer to the time when interest rates will rise.

"When will that be?" said the bells of Stepney.
"I'm sure I don't know," said the Great Bell of Bow.:rotfl:

Biggles

incandescent wrote: »

The rate on my cash ISA is due to be reduced in just over a month so I've been considering transferring it to a one year fixed rate ISA to try to get a slightly better rate.

But with Mark Carney's comments that the BoE might increase the base interest rate towards the end of the year I'm not so sure.

Bearing in mind that interest rates are at an all-time low, it goes without saying that, sooner or later, they are going to go up.

As regards your ISA (or any other savings account), if there is a better rate out there, transfer it - never mind whether rates might go up; if they do, the new one will go up too!