Debate House Prices


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Deflation

MrRee_2
MrRee_2 Posts: 2,389 Forumite
in Debate House Prices & the Economy
Means that our record high pay rises are damned good news.

And it also means that our 3% Interest on savings is damned good news too.

Add the 2.5% Pensioners Triple Lock and let it roll ...

Will the good times end? :j
Bringing Happiness where there is Gloom!
«13

Comments

  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    We should see inflation start to accelerate during the start of next year as the oil price falls drop out of prices but even then only to c. 1.5%.
  • caronoel
    caronoel Posts: 908 Forumite
    I've been Money Tipped!
    My prediction of no interest rate rise until Q4 2016 looks increasingly likely

    I should have put a fiver on myself
  • MJ12
    MJ12 Posts: 86 Forumite
    caronoel wrote: »
    My prediction of no interest rate rise until Q4 2016 looks increasingly likely

    I should have put a fiver on myself

    And perhaps another round of QE too.
    2nd Aug, 15: £276k. 18th Sep, 15: £269k. 30th Oct, 15: £265k.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    caronoel wrote: »
    My prediction of no interest rate rise until Q4 2016 looks increasingly likely

    With negligible inflation even nominal rates of interest become real.
  • MrRee_2
    MrRee_2 Posts: 2,389 Forumite
    It's an unreal situation to those, who like me, lived through the hyper inflation of +20% and paying Interest Rates of 12% on Mortgages.

    The borrowers today have never had it so good - the only fly in the ointment is that their debt remains at a true level rather than having inflation erode it away.

    But, I have never known a time so stable for so long.

    It's good to see savings pulling ahead of inflation ... for so long now the £ in savings has bought less as the years went by.
    Bringing Happiness where there is Gloom!
  • Aberdeenangarse
    Aberdeenangarse Posts: 1,259 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    MrRee wrote: »
    Deflation

    I thought it meant MrPricklepants had let your tyres down! :D
  • MrRee_2
    MrRee_2 Posts: 2,389 Forumite
    He's certainly all over teh place with his pressures! :D
    Bringing Happiness where there is Gloom!
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    chucknorris wrote: »
    Do want to reconsider this post? Inflation at +20% and a mortgage rate at only 12% sounds unbelievably good to me, how is that not better than today?

    the benefit is from wage increases ; not price inflation
  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    MrRee wrote: »
    It's an unreal situation to those, who like me, lived through the hyper inflation of +20% and paying Interest Rates of 12% on Mortgages.

    The borrowers today have never had it so good - the only fly in the ointment is that their debt remains at a true level rather than having inflation erode it away.

    But, I have never known a time so stable for so long.

    It's good to see savings pulling ahead of inflation ... for so long now the £ in savings has bought less as the years went by.

    Do want to reconsider this post? Inflation at +20% and a mortgage rate at only 12% sounds unbelievably good to me, how is that not better than today (in terms of buying property)?
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    CLAPTON wrote: »
    the benefit is from wage increases ; not price inflation

    I'd rather have it the other way, borrowing at 12% and my property (properties) growing at 20%. That would suit me fine.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
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