Interest rate predictions.

Fredbloggs1

Hi 

Do you guys think interest rates will be going up or down in the near future. 

I know it’s difficult, but best guesses please.

Hoenir

BOE down. How this filters through to the real world who knows. There's numerous interlinked positions that need to unwind yet. The immediate impact of lower BOE base rate will be felt in business where floating rate linkage is far more common. 

Baldytyke88

AI Overview

As of January 2025, interest rates are likely to go down. This is due to a slight decline in inflation and some mortgage lenders already cutting rates

jimjames

Fredbloggs1 said:

Hi 

Do you guys think interest rates will be going up or down in the near future. 

I know it’s difficult, but best guesses please.

Yes I do think they will be going up or down. Down is more likely I think

subjecttocontract

I think they will stay where they are and then go up later in the year. The economy is not in a good place.

singhini

Inflation is 2.5% from 2.6% previously yet interest rates are higher at 4%+
So i recon BoE rate will go down in Feb (as 4% interest rates mean debts and savings are increasing faster than prices and so are anchoring down economic growth).

boingy

Down, but slower than folks expect.

VNX

boingy said:

Down, but slower than folks expect.

I know it’s not a great metric to use but I’ve just been looking at ISA rates there is a cigarette paper between 1/2/3 year fixed rates 

Albermarle

VNX said:

boingy said:

Down, but slower than folks expect.

I know it’s not a great metric to use but I’ve just been looking at ISA rates there is a cigarette paper between 1/2/3 year fixed rates 

Normally you get a bit extra for tying up your money, so those 1/2/3 year rates are probably still indicating some drop in rates, but not much. 

JJM03

Suspect BOE rate will eventually settle around 3.5-3.75%. Fair to savers and borrowers. Easy access rate around or just above 3%, fixed rates a little higher. The days of 5%+ on savings are over for the foreseeable.

Ocelot

It was good for the 2 years or so while it lasted, but I strongly suspect down, but not to the ridiculous 0.2% type rates we suffered for 13 years (good for mortgages though).