Interest Rates going back up to normal levels again?

masterwilde

i agree.. why do you assume i rent though...... your wrong

Jack_Johnson_the_acorn

masterwilde wrote: »

i agree.. why do you assume i rent though...... your wrong

I was meant to reply to our Crashaholic friend.

Filo25

With UK economic growth still anaemic, Brexit uncertainty still to come, further fiscal tightening still ahead in the coming years, and wage growth not showing many signs of rapid growth in response to the devaluation driven inflationary spike, I struggle to see much of a rationale for a significant increase in rates anytime soon.

The UK (and much of the global) economy has basically been on life support from ultra loose monetary policy since the GFC, I don't see anyone wanting to turn off the life support anytime soon.

Dandytf wrote: »

Amzing comment ....saved until 2027 🏦

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Its not completely ludicrous when you consider we've already been at 0.5% or lower for over 8 years.

The one driver which could change things significantly I suppose would be a Corbyn led government going on a spending binge

Conrad

My view is the economy is sill semi-fragile having not fully recovered from the Banking crash.


I view rate rises as highly likely to dampen down consumer spending and other activity. Even a rise of 1% could have a big effect on millions with mortgages, but the increased spending by the elderly on the back of 1% rise on their savings would be miniscule by comparison.


Brexit is clearly a time of change and so I think keeping rates where they are is the way to go


Inflation will take care of itself through competition and other mechanisms and the £ is rising anyway so imported inflation should be a lessening effect


RENTAL MARKET - I've been saying for some time that a big proportion of Landlords are no longer buying. Anecdotally talking with old lender mates and reps on new build sites, Landlords aren't buying new stock.
Certainly I get far fewer enquiries to my biz from Landlords now. Most I know that are still investing are switching to commercial and even traditional equities.

A dwindling pool of rental property supply coupled with mortgage rate rises could mean substantially rising rents.

Carl31

a .25% rise could be on the cards, that puts us back where we were after the vote, and recovers the not needed cut Carney put through to prove his point. That keeps everyone happy for a while, and they can retain at a low rate for a longer period

GreatApe

Interest rates should be cut to -1% and kept there for the next 20 years

Inflation is going to stay very low over the next 10-20 years as the near AI software makes goods and services cheaper and cheaper

Almost all the tech and car companies are saying fully self drive vehicles will be out within 5 years if not sooner. Driving, aka moving things around is about 10% of the economy or £200 billion just in the uk. Just Self drive software will push inflation down perhaps by 0.5% annually over a period of a decade.

Other near AI software will also quickly follow, if a computer can do driving 10x better than humans you can be sure that near AI software that does your accounts, near AI software that does legal work, near AI software that works on production lines all 10 x better than humans is not far behind

If this near AI software happens over a period of 25 years it could possibly result in +2.5% annual wage inflation coupled with 0% goods/service inflation. With 0% inflation rates should be negative by at least 1-2 points

Of course this all sounds far fetched, but it is coming the exact time frame is unknown maybe it will start in 5 years maybe in 10 years

ruperts

The pound isn't strong, it's just marginally less weak. It is still trading within the weakest range than at any other time in history bar one short term event several decades ago. To describe it as strong is absurd.

Interest rates going up is ridiculous. Growth is very weak, prospects are currently very poor, house prices are not rising, in some places they're still below where they were a decade ago, likewise with wages. Ordinarily under these circumstances there would be absolutely no suggestion of increasing interest rates, it's purely because of the severe economic and social mismanagement by the Tory government that we're now in this dreadful situation of having to increase rates basically just to save face.

Dandytf

Carl31 wrote: »

a .25% rise could be on the cards, that puts us back where we were after the vote, and recovers the not needed cut Carney put through to prove his point. That keeps everyone happy for a while, and they can retain at a low rate for a longer period

Your advice is much more sensible than no rate rises for 10years.

My only conceren is mustiple .25% rises for next few quarters/years.

Maybe I’ll manage to sell my flat before multiple rises.

Think my 2 yr fixed rate is going to fly by

Out,_Vile_Jelly

I have no control over (or that much interest in) interest rates going up or down. I do have control over my own finances; therefore I overpay my mortgage, save and live modestly. I sometimes feel this is abnormal, deviant behaviour though.

movilogo

For many homeowners, the current interest rate is the new normal and any upward movement is abnormal