Interest rates rising

Afternoon

Hi
I was wondering if anyone could give me their thoughts on what would need to happen in order for interest rates to rise again? 

masonic

Something pretty spectacular.

Aretnap

A couple of decades?

Afternoon

Aretnap said:

A couple of decades?

But I've already waited a decade.

masonic

Afternoon said:

Aretnap said:

A couple of decades?

But I've already waited a decade.

What will it mean for you for interest rates to rise? For many it will be a bad thing.

Afternoon

masonic said:

Afternoon said:

Aretnap said:

A couple of decades?

But I've already waited a decade.

What will it mean for you for interest rates to rise? For many it will be a bad thing.

There has to be a balance for savers and people in debt. People who have been in debt have benefited from these low rates so in theory should have sorted their position out by now. 

Afternoon

masonic said:

Something pretty spectacular.

Anything more specific? Any particular economic scenarios to look out for?

Fatbritabroad

I've literally been thinking about this today. Working in an industry where I talk to businesses on a daily basis only way to make social distancing viable is to increase prices. 15 to 20 %. If enough industries do it. Coupled with a hardening insurance market causing cost pressures I wouldnt rule it out 

masonic

Afternoon said:

masonic said:

Afternoon said:

Aretnap said:

A couple of decades?

But I've already waited a decade.

What will it mean for you for interest rates to rise? For many it will be a bad thing.

There has to be a balance for savers and people in debt. People who have been in debt have benefited from these low rates so in theory should have sorted their position out by now. 

Historically inflation has been higher too. People holding cash over long periods of time have tended to achieve after-inflation returns similar to those achievable in the last decade. A significant debt people have is mortgage debt. Given that housing is way too expensive, low interest rates are the only thing allowing many to afford a home. A good property price crash would help towards paving the way towards higher rates, along with inflation starting to bite. Quite possible with events looming on the horizon, but don't expect to be better off as a result.

Thrugelmir

Governments would happily see inflation rise in order too see the size of their balance sheets shrink. Otherwise Japanese style stagnation looms. 

Gary1984

But with the independence of the Bank of England would they not need to raise interest rates to stop inflation getting too high if needed? I accept the government would rather they didn't but how much can they lean on them?