Will interest rates rise next month?

Nebulous2

Beddie said:

I'm guessing a 0.5% rise. There's too much uncertainty and the economy is looking awful. Previous rises have not really had a chance to bite either, in terms of driving down inflation.

That could be a good shout, but I'm still leaning to 0.75%. 

They are behind the curve a bit with the Fed and have been criticised, somewhat unfairly in my view, for weakness in their rises. 

They were caught out last time with the mini-budget. The new sequence with the autumn statement now happening after their decision doesn't help. 

Noneforit999

Have they given it enough time for previous rises to filter down to inflation?

Genuine question. I have no idea but we have had a couple of rate rises now and inflation is still high.

My gut feeling is 0.5% but who knows. 

sammyjammy

frugalmacdugal said:

Hi,

do you think it might go down, with new chancellor, who knows?

Who the chancellor is has no impact on what happens to interest rates!

Thumbs_Up

Do some on here get excited about pending interest rates rises but then tempered by your children having to pay more on mortgage payments, it’s a double edge sword.   

Bigwheels1111

I love the rate rises, as mortgage is paid and house sold, now have cash to use as income.

I feel sorry for poeple that they are paying more now.

I helped 3 family and friends remortgage early this year, for 5 year fixed at great rates.

The forth did not want to know and now is up SXXT street.

But you cant help everyone.

phillw

sammyjammy said:
Who the chancellor is has no impact on what happens to interest rates!

Inflation is in part driven by exchange rates affecting price of imports. 

Who the chancellor is, has at least some impact on interest rates.

Albermarle

I now think you may be correct with 0.5% although personally I think a 0.75% rise would be more appropriate this time with a lesser 0.5% rise to follow on December 15

The first B of E meeting of 2023 will be on 2nd February. It will be cold and dark and heating bills really hurting some. Also post Xmas credit card bills to pay. Inevitably spending/demand will be depressed, and probably a lot of strikes and government spending cuts.  It is difficult to see another rate rise in that scenario.

dunstonh

Interest rates should rise around 1% but the BoE has bottled it over the last year and been behind the curve the whole time.  So, it is possible it will just be 0.5%.    

Interest rates are expected to continue rising most months into next year unless the dollar begins to fall (it has this week but its too early to say whether that is a trend or a blip)

phillw

Albermarle said:
The first B of E meeting of 2023 will be on 2nd February. It will be cold and dark and heating bills really hurting some. Also post Xmas credit card bills to pay. Inevitably spending/demand will be depressed, and probably a lot of strikes and government spending cuts.  It is difficult to see another rate rise in that scenario.

Will spending be depressed enough though? If not, they will raise interest rates.

cricidmuslibale

Albermarle said:

I now think you may be correct with 0.5% although personally I think a 0.75% rise would be more appropriate this time with a lesser 0.5% rise to follow on December 15

The first B of E meeting of 2023 will be on 2nd February. It will be cold and dark and heating bills really hurting some. Also post Xmas credit card bills to pay. Inevitably spending/demand will be depressed, and probably a lot of strikes and government spending cuts.  It is difficult to see another rate rise in that scenario.

I entirely agree, sadly, with all of this bleak but undoubtedly true picture of what is very likely to be happening in the 1st few months of 2023. So yes, I too very much doubt that there will be a further rate rise on 2nd February. Which is why I do think there will almost certainly be a relatively small rate rise, either 0.5% or possibly only 0.25%, on December 15.