Interest Rates going back up to normal levels again?

Electrum

The pound is looking strong against the USD, are we going to see interest rates being forced up more and more?


If so will there also be forced repossessions on a scale that will seem unprecedented by those who said these low interest rates were the new norm?

lisyloo

If so will there also be forced repossessions on a scale that will seem unprecedented by those who said these low interest rates were the new norm?

Very unlikely IMO.
People can cut back, take extra work, eat roadkill etc. when faced with rising bills.
Large scale repossessions will require mass job losses.
The BBC are reporting unemployment is down.

Filo25

Electrum wrote: »

The pound is looking strong against the USD, are we going to see interest rates being forced up more and more?


If so will there also be forced repossessions on a scale that will seem unprecedented by those who said these low interest rates were the new norm?

It is more a case of dollar weakness than pound strength at present.

If anything the FX impact actually makes rate rises less likely as Sterling's appreciation will help to take some inflationary pressure out of the economy.

The one thing worth keeping an eye on though is whether the expansionary position of the US government starts to drive global growth significantly higher and we start to see increasing inflationary pressures globally, that would see global rates rising and probably an end to the long bull run in asset prices.

Other than that possibility though the outlook for rates still looks pretty benign

westernpromise

Electrum wrote: »

The pound is looking strong against the USD, are we going to see interest rates being forced up more and more?

Why would a strengthening £ force rates up? If he pound is strong it suggests rates are too high.

Thrugelmir

Electrum wrote: »

The pound is looking strong against the USD, are we going to see interest rates being forced up more and more?

Might see the Fed raise interest rates 3 times in 2018, the BOE 2 times. ECB could well start scaling back their bond purchasing programme. No need to force. The tide has turned. Albeit slowly.

MobileSaver

Electrum wrote: »

If so will there also be forced repossessions on a scale that will seem unprecedented

LOL at the tin hat brigade. :rotfl:

Simple answer: no, there won't.

The-Joker

Thrugelmir wrote: »

Might see the Fed raise interest rates 3 times in 2018, the BOE 2 times. ECB could well start scaling back their bond purchasing programme. No need to force. The tide has turned. Albeit slowly.

The problems from 2008 were just pushed into the future, all they can do is keep kicking the can

Filo25

Interesting to see the broad based increases in 10 yr yields in recent days, for now at least there does seem to be increasing expectation of higher inflation and higher rates.

michaels

Filo25 wrote: »

Interesting to see the broad based increases in 10 yr yields in recent days, for now at least there does seem to be increasing expectation of higher inflation and higher rates.

Given my 5 year fix ends in October I have confidently predicting a strong rally in yields in the next few months.

Filo25

michaels wrote: »

Given my 5 year fix ends in October I have confidently predicting a strong rally in yields in the next few months.

I know the feeling! :rotfl:

How far in advance can you lock in a remortgaging deal, I know for new mortgages it can be up to 6 months, is it similar on a remortgage?