Future of savings rates over the next 2 years

mobfant
mobfant Forumite Posts: 293
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Wondering what people think (best guess) of the direction of easy / notice accounts over the next couple of years is going to be.

My guess is that the BoE increase rates by .25 on Thursday, then in the subsequent 4-6 weeks we see easy access rates and 90-day rates go up by maybe .2, but 1 year ish rates stay broadly the same as they are now. 

And then the BoE probably doesn't change the rates for a while and savings rates stay broadly the same over the next 18 months.

Does this sound reasonable? Anyone have different views?
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Comments

  • Wheres_My_Cashback
    Wheres_My_Cashback Forumite Posts: 4,172
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    edited 17 September at 9:27PM
    7 MPC meets prior to July 24 with 3/4 increases to come in Base.

    Rates to continue to rise to 6%-6.25% by summer 2024 where they will plateau for a while before dropping to 4-4.50% by summer 2025.

    EA / Notice a/c to surpass 6% by March 24
  • Swipe
    Swipe Forumite Posts: 4,666
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    Too tough to call IMO.
  • MiserlyMartin
    MiserlyMartin Forumite Posts: 2,219
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    If we have a bad recession they may cut in in early 2025 perhaps to your 4% by the summer
  • ZeroSum
    ZeroSum Forumite Posts: 926
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    I believe the current market expectation is that the base rate will increase another 50 base points by March then slowly drop to about 3.5 - 3.75% over next 5 years.

    However, a number of unexpected things could happen to put a spanner in the works to change things in either direction.
  • nic_c
    nic_c Forumite Posts: 2,887
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    The rates for one and two year fixes are about same at places offering both. That would suggest the thought is we get 50 base point higher and stick before slowly start to decrease from 2025. Sub 4% is probably 4-5 years away. 
  • 25_Years_On
    25_Years_On Forumite Posts: 3,019
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    "Anything can happen in the next half hour."
  • subjecttocontract
    subjecttocontract Forumite Posts: 1,283
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    edited 18 September at 7:38AM
     I think a Labour win at the GE will likely affect interest rates adversely for mortgage holders, increase taxes and hit us all in our pockets but a Labour win is pure fiction at the moment.
  • Swipe
    Swipe Forumite Posts: 4,666
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    On the radio they are now talking about a pause on any hikes.
  • trickydicky14
    trickydicky14 Forumite Posts: 815
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    "Anything can happen in the next half hour."
    Stingray!!!
    I choose the rooms that I live in with care,
    The windows are small and the walls almost bare,
    There's only one bed and there's only one prayer;
    I listen all night for your step on the stair.
  • Newbie_John
    Newbie_John Forumite Posts: 189
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    I think the only thing for sure is that they won't go to 10% and won't drop to 1% - everything in-between is possible.
    Look at any previous predictions back in Feb 2023 for BoE rates, expectations where to peak at around 4% and then drop by end of the year. Very similar situation now - so I really doubt any predictions tbh.

    The best 1 year fixed is 6.2%, will it go up? Possibly but not for much more. Will it be higher in 2 years time? I doubt, how low will it get? 2,3,4,5,6 - pick your number :-)
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