interest rates

be96erj

Hi

can anyone tell me what were the factors that caused interest rates to spiral in the 80s/90s? Are the same factors prevalent now? Does anyone think this could happen again?

thanks

be96erj

I have to ask- is there a problem with the questions I ask on this forum? I have posted a couple of questions in the last few weeks and I never get a reply!

I notice that 25 people have viewed this question, but no one reply!

Thanks a bunch for all your help!

Gailk

sorry, the reason I haven't replied is I don't know the answer.
Nor do I have crystal ball to tell if its going to happen again!!

Sooler

be96erj wrote: »

Hi

can anyone tell me what were the factors that caused interest rates to spiral in the 80s/90s?

John Major & Norman Lamont.

Yes it could happen again, at sometime.

nathanhill69

be96erj wrote: »

I notice that 25 people have viewed this question, but no one reply!

So one assumes that they didn't know the answer to your question Apparently it's not compulsory to answer every thread that you view and better that any answers given are from posters that actually know the answer.

Thanks a bunch for all your help!

Probably not really going to encourage responses with such a bad attitude as this comment suggests. Also you posted your original question at 10.13am and then get all upset by 11.00am because no one has "instantly" answered your question. Patience is a virtue:-)

CL

I'm no expert but as far as I know high inflation will lead to higher interest rates.

Inflation is running fairly high at the minute but houseprices are falling and people are starting to struggle with their mortgages so I would guess that we may see another one or two base rate drops (in response to pressure to make mortgages more affordable to prop up the housing market) before the government has to step in and take control of the base rate to curb inflation. This is only my opinion.

http://www.bankofengland.co.uk/statistics/rates/baserate.pdf

Take a look here to see the base rates through the 80s and 90s. As you can see they were significantly higher throughout the whole boom and bust cycle going from and average of about 10% to a peak of just under 15%.

If the same was to happen again you would be looking at going from an average of about 5-6% which would make a possible peak about 7.5 - 8%

Although the amount owed now could be three or four times higher so the effect could be the same

The other thing we are seeing now is that banks are setting their own rates and ignoring the Base rate, last week the rate was dropped but several lenders increased their rates anyway.

PS. You may be better taking a look at the house buying and selling board as this is the sort of thing that is often discussed there

_Andy_

be96erj wrote: »

I have to ask- is there a problem with the questions I ask on this forum? I have posted a couple of questions in the last few weeks and I never get a reply!

I notice that 25 people have viewed this question, but no one reply!

Thanks a bunch for all your help!

You really have a poor attitude and are very impatient. Not surprising you're not getting the responses you want.

maninthestreet

Interest rates may, or may not, reach the levels last seen in the 80s/90s. If they do, this may, or may not, have the same causal factors as in 80s/90s.

minimike2

I read it and decided not to answer to the the second post...