What will happen when interest rates rise?

Thrugelmir

padington wrote: »

... Personally think a rate rise isn't on the cards and the cards arnt even in the room and the room hast even been built yet.

There's no real reason for the BOE not to raise rates. The job of supporting the banks is now done. Anything else is incidental. An eighth rise will go through unnoticed. Over time rates will be lifted back up to more normal levels.

The US may influence other Central Banks.

midnight_child

CLAPTON wrote: »

no memory of people panic buying

These people were panic buying bottled water, wood burning stoves and the like. Though there seems to be a high proportion of Americans for a UK media outlet.........
http://news.bbc.co.uk/1/hi/talking_point/talking_point_on_air/398248.stm


As well as allowing a HYS forum on such an important issue, the BBC even produced a handy survival guide
http://news.bbc.co.uk/1/hi/health/265582.stm

padington

Thrugelmir wrote: »

There's no real reason for the BOE not to raise rates. The job of supporting the banks is now done. Anything else is incidental. An eighth rise will go through unnoticed. Over time rates will be lifted back up to more normal levels.

The US may influence other Central Banks.

It certainly looks like the fed is going raise rates, which is why I think they won't and if they do they will effectively be so small and so slow to rise, it would be more realsiitic to say, looking back in five years time, they hardly raised them at all.

wymondham

ukcarper wrote: »

Won't the majority of those have been subject to the new lending criteria.

Yes, but I wonder how many of this 1m+ people ever even thought rates could go up?

ukcarper

You seem to have a very low opinion of people I would imagine the vast majority know there is a possibility. I lived through the high interest paying 60% of my take home pay on mortgage payments. Some people will default but the majority will moan and struggle through.

wymondham

ukcarper wrote: »

You seem to have a very low opinion of people I would imagine the vast majority know there is a possibility. I lived through the high interest paying 60% of my take home pay on mortgage payments. Some people will default but the majority will moan and struggle through.

I wouldn't say low, just realistic...

MFW_ASAP

midnight_child wrote: »

Not determined to find anything, just curious what will happen in the coming months/years.

I've not got much more to add here, so lets pick this discussion up say 3 months after the first rate rise, whenever that may be.

Maybe you will be correct and this turns out to be the biggest non-event since people were panic buying in case they caught the millennium bug.

If this is so please feel free to gloat mercilessly.

The rate rise will be so far off that I doubt people will remember this conversation. For future discussions though, you might want to drop the pretense that you're 'neutral' and just interested in a balance of opions and just declare yourself as a crasher and therefore only interested in viewpoints that match and support your own. It's much less disngenuous.

Just some friendly advice, take it or leave it.

MFW_ASAP

wymondham wrote: »

Yes, but I wonder how many of this 1m+ people ever even thought rates could go up?

All of them?

padington

Feds not raising rates any time soon after this ...

http://www.theguardian.com/business/2015/aug/12/china-yuan-slips-again-after-devaluation

Graham_Devon

CLAPTON wrote: »

about 26 million are benefiting from rising employment and higher wages

Seems unemployment is up official figures show today.