The fed just raised interest rates by .25%

lisyloo

Source bbc

UK interest rates are not expected to rise in 2017, and indeed are more likely to be cut further from the current historic low of 0.25%, according to Anna Stupnytska, global economist at Fidelity Investment Management.

Crashy_Time

lisyloo wrote: »

Source bbc

The UK cutting rates further as the US hikes and the EZ unravels will be the greatest popcorn show of all time. Bring it on!


Carney will be sacked soon anyway IMO.

MacMickster

Thrugelmir wrote: »

The UK is dependent on borrowing from overseas. If the US offers a much higher return than the UK. Which option do you think investors will choose? Doesn't require an increase in BOE base rate to have an impact on the wider market either.

A series of interest rate rises in the US will further strengthen the dollar against other currencies. Oil, priced in dollars becomes more expensive, just as the oil-producing nations agree to restrict output in order to raise prices.

If this causes increasing inflation in the UK then corresponding rises in UK interest rates become more likely in response.

lisyloo

What you said doesn't tally with what the boe said in their minutes

"Since the Committee's previous meeting, sterling's trade-weighted exchange rate has appreciated by over 6%, while dollar oil prices have risen by 14%," the Bank said.
"All else equal, this would result in a slightly lower path for inflation than envisaged in the November Inflation Report."

chucknorris

Crashy_Time wrote: »

Strange that you get this, but can`t make the connection between how the UK public view debt, rising rates, and your own situation?


Get ready to pay off those mortgages. BTW did I miss the link to the one you sold?

No you didn't miss it, you told me that you had lost interest!

There isn't going to be any reason soon to pay off those mortgages, the largest one is only 0.68% (others are lower) above the current base rate, and my dividend income pays much higher than that.

MacMickster

lisyloo wrote: »

What you said doesn't tally with what the boe said in their minutes

The US hadn't just raised its interest rate when that report was prepared.

Crashy_Time

chucknorris wrote: »

No you didn't miss it, you told me that you had lost interest!

There isn't going to be any reason soon to pay off those mortgages, the largest one is only 0.68% (others are lower) above the current base rate, and my dividend income pays much higher than that.

Great. As I said most of your potential buyers will be at the mercy of base rate and how they have used debt in the past, it is not as if some clone of yourself is going to come along and snap up a non-bargain from you at bubble prices is it? Sentiment is everything, and rate rises will severely dampen sentiment.

Crashy_Time

MacMickster wrote: »

A series of interest rate rises in the US will further strengthen the dollar against other currencies. Oil, priced in dollars becomes more expensive, just as the oil-producing nations agree to restrict output in order to raise prices.

If this causes increasing inflation in the UK then corresponding rises in UK interest rates become more likely in response.

And just as they need oil prices higher, we are having the warmest winters on record........:rotfl:

michaels

Thrugelmir wrote: »

The UK is dependent on borrowing from overseas. If the US offers a much higher return than the UK. Which option do you think investors will choose? Doesn't require an increase in BOE base rate to have an impact on the wider market either.

When choosing to invest in a different currency you look at both the foreign currency return (interest rate) and predicted exchange rate movement. Exchange rates will adjust so that expected future movements will counterbalance differences in interest rates.

For example the brexit vote resulted in reduced expectations for uk interest rates and thus a fall in gdp so that its expected path going forward was an appreciation to make up for the lower anticipated returns on gbp assets.

chucknorris

Crashy_Time wrote: »

Great. As I said most of your potential buyers will be at the mercy of base rate and how they have used debt in the past, it is not as if some clone of yourself is going to come along and snap up a non-bargain from you at bubble prices is it? Sentiment is everything, and rate rises will severely dampen sentiment.

Please forgive me for saying this Crashy, but you are the most financially ignorant person that I have ever come across, so your opinion is laughable. We have already sold one property (subject to contract). Prices could fall over 60% and we would still be selling at a huge profit.