Base Rate Predictions

speedbird1973

stoke_bishop wrote: »

Except Labour don't control the base rate, so a reduction at election time is not going to come from them!

Aw bless!! how naive :rotfl:

There is a touch of symbiosis between labour and tory... The Tory's basically build up and improve the economy and put labout in a position where they can blow it all and improve things.. by which time the economy is broke and the Tories come in and fix it.. so begins the cycle.

Guy_Montag

12 months = 5.25% (unchanged this year, balancing inflation against slowing growth)

2 yrs = 7% +/-1% (oil & food prices so high the deflationary discretionary goods are pushed out of the CPI basket)

3 yrs = 7 +/- 2% (gets worse)

5 yrs = 7 +/- 4% (fiscal policy no longer able to control inflation, since worldwide inflation of essential goods is not controllable by BoE MPC)

10 yrs = 7 +/- 6.5%

Of course these are just BoE rates, not lenders' rates which may have a much greater spread on them.