Predictions on the BOE next move?

Corley

Ive heard/read alot of totally different predictions on what the BOE will do next, what do everyone on here think will happen next?

herbiesjp

Based on the minutes of the last meeting, where it was just 5 to 4 in favour of the cut, and recent inflation figures - all indications are that rates will remain constant for the time being. However, the minutes did state that if inflationary pressures did continue the BoE would quite happily put them back up again.

It's the guessing game again

MortgageGenie

With the CPI up to 2.3% my guess is I don't think we'll see another BOE move in the short term. Swap rates seem to have also ruled out further reductions for the time being.

lisyloo

The scope for further cuts was reduced by CPI at 2.3%.
The vote was narrow at 5-4 and the govenor did not vote for it.

Rates on hold in the short term IMO.
Longer term I think they will go down as we get further poor news from the housing market and the retail sector accompanied by job losses.

meanmachine_2

Housing market and retailers having nothing to do with the MPC which is meant *ahem* to be focussing only on inflation.

My guess is rates on hold until January then a shift...but inwhich direction no one can really know.

Best advice is, in these times of uncertainty, fix your rate while it's still low.

Corley

yea im stuck in middle between fixing for 2 years or staying variable, man i wish i could see the future

KTF

I am in the process of remortgaging and have gone for the fixed option. I dont think rates will drop much in the near future and as most variable rates are higher than fixed at the moment it will take at least 1 further rate cut (if it happens) before you 'lose' money for being on a fixed deal.

Also, I like the fact that I know exactly what will be going out of the account every month for the next few years.

doodle_bug

On hold, but, when the fuel prices stabilise the cpi will drop drastically and slow growth should point to further cuts.

Ian_W

Corley wrote: Ive heard/read alot of totally different predictions on what the BOE will do next, what do everyone on here think will happen next?

No different here is it - lots of different opinions. Truth is no-one knows, not even the BofE - depends on so many unknown quanities.

If you're on a tight budget, rates are fairly low - fix. If you're paying a bit over the odds in 12 months time, so what? You've still got your home.
If you can afford rates going up to 5, 5.5 or 6% in the next 2 years - take a chance on variables - ditto, you've still got your home.

Life is so uncertain - but better than the alternative!!

deemy2004

My crystal ball says the BOE will cut interest rates in Jan 06. Then raise them again in May 06.

Prudent

deemy2004 wrote:

My crystal ball says the BOE will cut interest rates in Jan 06. Then raise them again in May 06.

Does it happen to know the lotto numbers as well?