Interest Rates going back up to normal levels again?

The-Joker

More talk than ever about interest rates correcting back to normal as the pound is so strong of late,

then property will also correct back down to normal levels,

marathonic

The-Joker wrote: »

More talk than ever about interest rates correcting back to normal as the pound is so strong of late,

then property will also correct back down to normal levels,

The talk is of slow rises over an extended period. The predictions for end of next year are as follows:

0.25% 15.4%
0.50% 29.9%
0.75% 29.6%
1.00% 16.0%
1.25% 4.7%

It'd be extremely unwise to equate current talk to a guaranteed reduction in property prices when the reality is that markets predict a 75% chance of rates being no higher than 0.5% higher in 15 months time.

ess0two

The-Joker wrote: »

More talk than ever about interest rates correcting back to normal as the pound is so strong of late,

then property will also correct back down to normal levels,

Quite an apt username.

norm_

I don't see IR changing at all. Carney's merely hinting at it to get the pound to climb, and slow inflation.

Filo25

norm_ wrote: »

I don't see IR changing at all. Carney's merely hinting at it to get the pound to climb, and slow inflation.

Pretty much my reading as well, although there's only so many times they can cry wolf on rates!

kinger101

Could you define what you mean by normal? 5%? 7%? 12%? At some point in history, these would all be considered normal. But I don't think they will be in the future. Japan has had interest rates below 1% for two decades.

masterwilde

interest rates have no correlation to the pat since the way way QE has operated its broken the scale. You will be very lucky to see even 3% in the next 10 years.

Dandytf

masterwilde wrote: »

interest rates have no correlation to the pat since the way way QE has operated its broken the scale. You will be very lucky to see even 3% in the next 10 years.

Amzing comment ....saved until 2027 🏦

Crashy_Time

kinger101 wrote: »

Could you define what you mean by normal? 5%? 7%? 12%? At some point in history, these would all be considered normal. But I don't think they will be in the future. Japan has had interest rates below 1% for two decades.

And their property market kept on booming as well.....

masterwilde

well lets see shall we how well uk ecomony is doing.

BOE has pumped 515 billion unto uk banks in last 10 years. UK banks currently have liquidity of 600 billion for a crash if one happened in next 6 months

The western world is pumping money through banks at an unprecedented level, interest rates through the floor, no sign of change... and yet all is well.... keep pulling the wool over your eyes

Jack_Johnson_the_acorn

masterwilde wrote: »

well lets see shall we how well uk ecomony is doing.

BOE has pumped 515 billion unto uk banks in last 10 years. UK banks currently have liquidity of 600 billion for a crash if one happened in next 6 months

The western world is pumping money through banks at an unprecedented level, interest rates through the floor, no sign of change... and yet all is well.... keep pulling the wool over your eyes

Or keep paying off your LL's mortgage at a greater expense than paying off your own.

Long term renting is a mugs game, isn't even up for debate. :shhh: