Get out your crystal balls

IvanOpinion

I read a report last night on Teletext that the BOE thinks that interest rates may have peaked. What does everybody else think will happen in the next couple of years?

Do you think rates will go up more and if so how far?
Do you think rates will stabilise at their current rate?
Do you think rates will fall again and if so how far?

Ivan

PS: Should add that I have a vested interest in this since I am currently looking at my options for a new deal (I usually only take out 2 year deals).

lisyloo

You could try reading the Bank of Englands latest inflation report.

try
https://www.bankofengland.com

It was published yesterday so is bang up so day.
I would say (having flicked through that) that the current expectation is for rates to stay the same but with some risks to the downside.
i.e. if the dollar continues to fall, house prices fall further, people loose their jobs (as a result of house prices) and the economy does badly then rates could fall.

Courts (the furniture people) are already in emergency talks with their lenders as their sales are down by 20%.
Companies like double glazing, kitchens, new car sales  could be next.

I'm not sure whether things will mull along flat or whether we are about to go into recession.

I would definitely go for a variable rate at the moment, but that's just my opinion.
Loads of stuff to read in the BOE report though.