Predictions: Interest rates over the next year or so... crystal ball time!

What_time_is_it

So, what do we think will happen with interest rates over the next year or so? And what level will the BoE rate be at the end of 2025?

wmb194

What_time_is_it said:

So, what do we think will happen with interest rates over the next year or so? And what level will the BoE rate be at the end of 2025?

The market seems to think between 3.5% and 4%.

gravel_2

2.5% or 8%.

slinger2

Likely between 3 and 4%

[Deleted User]

So a 12 month fixed rate bond at 4.60% isn't going to look too shabby in a few months time?

francoghezzi

2.75% the possible target

NorwichMan

I was thinking they would continue to drop maybe to 2-3% by the end of 2025.

But what will be the effect of the chancellor changing the definition of debt and announcing billions more borrowing? Think I heard on the news that bond yields have risen. My non-economist brain is thinking this should put upward pressure on interest rates even as inflation falls, maybe.

Newbie_John

I think they may go up to 6%

subjecttocontract

Yes it's interesting that nearly everyone thinks rates will fall......perhaps on Wednesday some might change their minds.

MeteredOut

subjecttocontract said:

Yes it's interesting that nearly everyone thinks rates will fall......perhaps on Wednesday some might change their minds.

People should say whether they do or do not have a mortgage when they guess; I suspect there will be some correlation.

What_time_is_it

Interesting to hear people's views on this. The markets certainly seem to be pricing in a couple of falls before Christmas so they haven't been spooked by the speculation about increased government spending and the announcement about the debt definition. Unless there is something that comes totally out of the blue in the budget next week I tend to agree. Beyond that, of course, it's hard to tell. As with everything, give anyone who speaks with conviction and certainty a very wide berth!