Are we expecting BOE to remain at 4.75% on 8th February 2025?

mi-key

RelievedSheff said:

SmartyInvestor said:

dimbo61 said:

Could be another bad day on Monday for the banks.

Yes I was thinking the same. Bond markets have been crashing all over the world. Looks like we are heading into a another financial crisis.

CS have been bought out this evening as expected. 

You will have to find another excuse for a house price "crash" Crashy!

  Are we betting on 50% house price drops by the end of the week ? 

Sea_Shell

I don't know exactly what it means, but apparently, as part of the deal, CS's AT1 bonds, have been downgraded to zero.   

lojo1000

I am truly shocked at how people on this forum think there is no issue and that central banks can resolve the issue by offering up taxpayer money as a backstop.

If you want lower rates, you will likely get them in the next few months. But stop and consider why rates are falling.

When assets get revalued (up or down), your liabilities do not change. Even if assets prices collapse, your creditors still come after you for the same amount they leant.

In 2023, expect central bank rates to fall but commercial lending (and deposit) rates to rise as people/ business try and hold on to cash as the money supply shrinks. Directly opposite to when everyone had confidence, borrowed more and the money supply rose (because asset prices were rising).

Zerforax

I can see the BoE pausing on rate hikes for this month as they try and buy some time to see what the fall out from these failed banks / CS issue impact is.

RelievedSheff

mi-key said:

RelievedSheff said:

SmartyInvestor said:

dimbo61 said:

Could be another bad day on Monday for the banks.

Yes I was thinking the same. Bond markets have been crashing all over the world. Looks like we are heading into a another financial crisis.

CS have been bought out this evening as expected. 

You will have to find another excuse for a house price "crash" Crashy!

  Are we betting on 50% house price drops by the end of the week ? 

Absolutely. 

So easy to spot from a mile away.

RelievedSheff

Zerforax said:

I can see the BoE pausing on rate hikes for this month as they try and buy some time to see what the fall out from these failed banks / CS issue impact is.

I don't think they will pause. They were slower at starting to raise rates so have some catching up to do.

RelievedSheff

Sea_Shell said:

RelievedSheff said:

dimbo61 said:

Could be another bad day on Monday for the banks.

Unlikely.

One of the big banks will buy them out and calm will be restored.

Doesn't look like the Asian Markets have been calmed by the news that UBS has agreed to bail out Credit Suisse !!


Hang Seng down 3%

The Asian markets are currently closed but they had started to regain some lost ground prior to that. They will rebound again tomorrow when they reopen.

Europe's markets are relatively stable today.

coypondboy

fixed rates going back down to 1% by June as full blown banking crisis in play, don't fix at the moment do a tracker with no exit fees.  Sadly house prices will tank and unemployment rocket as banks pull back from loaning money.

RelievedSheff

coypondboy said:

fixed rates going back down to 1% by June as full blown banking crisis in play, don't fix at the moment do a tracker with no exit fees.  Sadly house prices will tank and unemployment rocket as banks pull back from loaning money.

Absolutely wont happen   

aoleks

RelievedSheff said:

coypondboy said:

fixed rates going back down to 1% by June as full blown banking crisis in play, don't fix at the moment do a tracker with no exit fees.  Sadly house prices will tank and unemployment rocket as banks pull back from loaning money.

Absolutely wont happen   

if it does, it will be extremely lucrative for many of us. imagine being in huge equity after the madness over the last 2 years and fixing for 5-10 years virtually for free. I'd maximise the loan amount and live kingly for the rest of the decade. but like you said, it won't happen. I see fixed rates going back to sub 3% by spring next year, though.