If they say BOE will peak at 4.5%...does this mean it will then start to drop to say 2% again?

IAMIAM

Or remain at 4.5% for a long while....

Edi81

Who knows? Market expectation is around 3.25% for the next 10 years. 

dimbo61

The days of 0.1% or even 2% are now a sad memory.
8 increases in the BOE base rate in the last 12 months from 0.1% to 3% with more to come next year. 
If you can find a 5 year fix for less than 5% you will do well.

london21

Next BOE increase 15/12/2022.

Days of 1-2% might be gone for now.

No one really knows but might go down to 3% ish 2024.

ACG

I was on a zoom meeting with an economist last week, the expectation they have is that it will peak at 4.5% in 2024, and then start to come down in order to end the recession. They think it will be around 3.75% in 2026 and 3.5% in 2028. 

Obviously nobody knows how accurate that will be, but it might give a bit more meat on the bones in terms of timeframes etc. 

RelievedSheff

dimbo61 said:

The days of 0.1% or even 2% are now a sad memory.
8 increases in the BOE base rate in the last 12 months from 0.1% to 3% with more to come next year. 
If you can find a 5 year fix for less than 5% you will do well.

There will be another rate rise next week!

Will be a least another 0.5% on Thursday. 

diystarter7

Hi

No one knows, not even those that claim they know/ie financial experts.

Because of inflation, it needs to remain at least around these levels

The other factor is always the unknown and that is anyone's guess

Thanks

dunstonh

Days of 1-2% might be gone for now.

Probably not to be repeated in our lifetime.  Governments need to get back to the more typical ranges as the ability to use interest rates to heat or cool an economy are not possible when interest rates are circa 1%.

No one knows, not even those that claim they know/ie financial experts.

No-one knows as you say. The events that will drive inflation in either direction are not yet known.    One of the major influences in the UK (and the rest of the world) is the strong dollar.   If the US keeps the dollar strong, then inflation will take longer to bring under control and the pain will have to be higher rates than predicted.   If the dollar weakens then the measures needed in the UK will reduce.

[Deleted User]

diystarter7 said:

Hi

No one knows, not even those that claim they know/ie financial experts.

Because of inflation, it needs to remain at least around these levels

The other factor is always the unknown and that is anyone's guess

Thanks

You are right. Too many people on here are convinced very quickly about interest rates, house price crash etc. Getting carried away, they are. 

PK_London

ZIRP (zero interest rate percentage) that we've had for the last 15 yrs, that have sky rocketed property prices, along with QE which leaves inflation in double digits today, the reason why you're seeing everything in the shops go up in prices and why every trade union is striking is the reason why low interest rates were an experimental disaster for the economy.

We need to get back to 5% and stay there.

Crazy low interest rates have been the root of all our economic evil.

I hope we never see 2% rates again in my lifetime.

snowqueen555

PK_London said:

ZIRP (zero interest rate percentage) that we've had for the last 15 yrs, that have sky rocketed property prices, along with QE which leaves inflation in double digits today, the reason why you're seeing everything in the shops go up in prices and why every trade union is striking is the reason why low interest rates were an experimental disaster for the economy.

We need to get back to 5% and stay there.

Crazy low interest rates have been the root of all our economic evil.

I hope we never see 2% rates again in my lifetime.

House prices need to adjust though. Housing is so unaffordable now and haven't fallen anywhere near enough as of yet.