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That time of the month - Interest Rates! [Feb 08]

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Comments

  • Mozette
    Mozette Posts: 2,247 Forumite
    poppy10 wrote: »
    Can't really blame her for her biological shortcomings, can we? :confused:

    :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    I really like your posts but disagree with this one.
    Trust me this time next year there will be 4.75% loan flyers coming through your door sandwiched in your local paper.

    Interest rates are likely to be a fair way lower in a year IMO. Whether there'll be huge amounts being lent is a different matter of course. I suspect not but time will tell.
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    Trust me this time next year there will be 4.75% loan flyers coming through your door sandwiched in your local paper.
    But where are they going to get the readies from? Ok in "ye olde dayes" with relatively high UK rates (compared to other countries, not absolutely high), lower currency risk etc, but times have changed.

    The (probably) political cut in December didn't do the banks any favours when "real" lending rates were actually going up - they won't be too keen to get stitched up again. Throw in the non-UK banks with high enough home rates to cover currency shifts (mainly Icelandic so far) and you make the choice - bung your dosh in the CleckHuddersFaxAndWatford at 4% or CodAndChipsRUs at 6% - they both have FSCS deposit protection.

    You may get 4.75% this time next year with an excellent credit record, but I'd be very surprised if you were getting flyers though the door without a lot of 2-point text...
  • brit1234
    brit1234 Posts: 5,385 Forumite
    Its looking like a hold based on recent data. A 1/4 cut won't aid liquidity issues as the banks haven't passed on the last cut with many increasing this week to counter this cut. House sales should stagnation and there are big inflationary pressures so I say it will be a hold.

    Blanchard will vote for a cut anyway thats for certain.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    I think they will cut by 0.25%. Sterling vs. dollar is nearly $1.95, which given the cuts by Big Ben (1.25% total) in the US is surprising. A cut here will likely see a continued fall in sterling.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • BTman
    BTman Posts: 354 Forumite
    Uniform Washer
    I voted HOLD, but have a feeling they will cut 0.25%...
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