Housing market?

shirlgirl2004

buggy_boy wrote: »

They don't actually need to raise rates as they have now stopped quantitative easing, they know they can always restart that.

I disagree, when the next crash comes (and they have a few years yet) then they will need to use all the tools in their tool box. Knowing they've already got the tools in use won't leave them enough tools to get the job done. QE is a useful tool but not enough on its own.

Crashy_Time

shirlgirl2004 wrote: »

This is about the only sensible thing I've seen you write. Having said that I don't think the rate rise will come quite yet but yes they need to get a wriggle on. I'm not sure it will affect too many as people are moving to fixed rates in anticipation.

Try reading more carefully, and with an open mind Future buyers can`t move to fixed rates, and it is them that dictate future prices.

buggy_boy

shirlgirl2004 wrote: »

I disagree, when the next crash comes (and they have a few years yet) then they will need to use all the tools in their tool box. Knowing they've already got the tools in use won't leave them enough tools to get the job done. QE is a useful tool but not enough on its own.

I think the when is subjective, it could be in 2 months time it could be in 20years time... I am sure the BoE will want to raise rates but it will happen slowly as they will not want to have a negative effect on the economy, with Brexit coming up business has enough uncertainty to deal with without rates rising fast...

I dont disagree they will rise to about 2-3% if they can over the next 5-10years, but they have not raised rates in 10years and I can't see the thought processes has suddenly changed.