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

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?


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  • wmb194
    wmb194 Posts: 4,594 Forumite
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    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
    gravel_2 Posts: 618 Forumite
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    2.5% or 8%.
  • slinger2
    slinger2 Posts: 836 Forumite
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    Likely between 3 and 4%
  • So a 12 month fixed rate bond at 4.60% isn't going to look too shabby in a few months time?
  • 2.75% the possible target
  • NorwichMan
    NorwichMan Posts: 178 Forumite
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    edited 24 October 2024 at 7:30PM
    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
    Newbie_John Posts: 1,105 Forumite
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    I think they may go up to 6%
  • Yes it's interesting that nearly everyone thinks rates will fall......perhaps on Wednesday some might change their minds.
  • MeteredOut
    MeteredOut Posts: 2,773 Forumite
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    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.
  • 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!
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