Next interest rate decision

RHemmings

Not much discussion about the next interest rate decision. I think we're in for a hold as the "market turbulence" is far from sorted out. But what do other people think?

benb76

probably another 0.25% before the end of 2007, but not much after that.

kingkano

hold for now. they don't need to make any changes because the marketplace for banks is already doing it for them. If inflation and retail sales keep dropping I can even see a cut coming at some point soon. Because a cut is unlikely to affect mortgage rates as much now....

JohnInDebt

Hold this month, with a 0.25% increase in October.

RHemmings

People here are more bullish about raises than I am. I wouldn't be surprised if we didn't see another raise this year, as I think the economic outlook is not bright.

Gorgeous_George

I expect a 0.25% drop this month and next followed by a general election in November.

You heard it here first.



GG

wolvoman

JohnInDebt wrote: »

Hold this month, with a 0.25% increase in October.

No chance.
Inflation is being kept down by slow retail, house and service purchases. Oh and wage inflation is being kept down too.

I see no increases in 2007, then possibly one or two 0.25% reductions next year.

Melissa177

Hold this month, no more increases this year.

Generali

Gorgeous_George wrote: »

I expect a 0.25% drop this month and next followed by a general election in November.

You heard it here first.



GG

I hope you're right as I've got about 6 quid on Betfair at average odds of 121.1 on a 25bp cut!

It's not going to happen though. Unless the FTSE falls by a further 15% or more in which case don't rule out a panic cut.

Rumour has it that a lot of put options have been sold that are a bet on a massive fall in the FTSE between now and 20th Sept when they expire so somebody thinks it's possible. I'm considering buying a put option as a form of unemployment insurance!

Martinslovechild

I believe we'll see a rise this month followed by 2 further rises in 2008.

My own forecast for Bank Rate at the end of 2008 = 6.5%.

Oil will continue to cause problems for inflation during the winter months of 2007-08. House Price Inflation will pick up in 2008 also. We'll see higher wage settlements around March - May which will cause the BoE to react agressively.

slipthru

I think they will hold for now.