Interest rate up

[Dr Jekyll]

From 0.1% to 0.25%. A blip or do we expect more to come?

I'd go for the latter.

[Matt p]

I’d be expecting more in the near future. Up to 0.25% is bugger all. 5.1% inflation is giving the BOE the willies.

[Biggy Stardust]

Matt p said:

Up to 0.25% is bugger all.

As people are more indebted than in days gone by a smaller rate hike might well have just as big an effect as a larger one back then.

[46and2]

Will we see it reflected in our savings accounts?

I think they are being cautious, if Omicron turns out to be nothing to worry about then I'd say we will see more.

If we have more lockdowns then I think they will stall

[aeropilot]

More to come.

From what I've seen the expectation is to be 1.0% by end of 2022, and 1.5% by 2023.

That's still stupidly cheap compared from pre-2009 era, and even more so from us old gits that remember the pre-1990 era rates of double figures.

[Countdown]

Dr Jekyll said:

From 0.1% to 0.25%. A blip or do we expect more to come?

I'd go for the latter.

Depends on what happens to inflation

[DanL]

aeropilot said:

More to come.

From what I've seen the expectation is to be 1.0% by end of 2022, and 1.5% by 2023.

That's still stupidly cheap compared from pre-2009 era, and even more so from us old gits that remember the pre-1990 era rates of double figures.

Seen where?

[aeropilot]

DanL said:

aeropilot said:

More to come.

From what I've seen the expectation is to be 1.0% by end of 2022, and 1.5% by 2023.

That's still stupidly cheap compared from pre-2009 era, and even more so from us old gits that remember the pre-1990 era rates of double figures.

Seen where?

The BS crap written in financial comments on the net.....

All to be taken with a sprinkle of fairy dust of course.

However, from a selfish 'not far away from retiree point of view'...... any increase is welcome

[blueg33]

I'm not convinced that interest rates are the right tool to deal with the inflationary pressure we have at the moment.

Eg - energy prices which are driven my factors outside of uk domestic spending

[Greenmantle]

Not to start a conspiracy but I bet BOE and HM Treasury will be doing everything in their powers to make sure that the inflation rate doesn't look that bad. "Manipulation of the figures"
King Canute springs to mind.

[okgo]

Biggy Stardust said:

As people are more indebted than in days gone by a smaller rate hike might well have just as big an effect as a larger one back then.

It's going to be about 10 quid difference on a 200k mortgage.

[iphonedyou]

blueg33 said:

I'm not convinced that interest rates are the right tool to deal with the inflationary pressure we have at the moment.

Eg - energy prices which are driven my factors outside of uk domestic spending

Believe they're quantitative easing too.

[Countdown]

aeropilot said:

However, from a selfish 'not far away from retiree point of view'...... any increase is welcome

Yep...if your DB pension is linked to CPI

[gashart]

Greenmantle said:

Not to start a conspiracy but I bet BOE and HM Treasury will be doing everything in their powers to make sure that the inflation rate doesn't look that bad. "Manipulation of the figures"
King Canute springs to mind.

Have been for years, take a look at what items have been removed from the official inflation rate over the last 20 to 30 years, to keep the official numbers low.

[Countdown]

iphonedyou said:

blueg33 said:

I'm not convinced that interest rates are the right tool to deal with the inflationary pressure we have at the moment.

Eg - energy prices which are driven my factors outside of uk domestic spending

Believe they're quantitative easing too.

Do you mean quantitative tightening? QE would make the problem worse.....

[Biggy Stardust]

okgo said:

Biggy Stardust said:

As people are more indebted than in days gone by a smaller rate hike might well have just as big an effect as a larger one back then.

It's going to be about 10 quid difference on a 200k mortgage.

My first mortgage was £34.5k & I didn't have a lease car, store cards, credit cards, catalogue bills and all the other buy-now-pay-later things that seem so common now.
Maybe I'm just a miserable old bugger, though.

[Bigends]

Biggy Stardust said:

okgo said:

Biggy Stardust said:

As people are more indebted than in days gone by a smaller rate hike might well have just as big an effect as a larger one back then.

It's going to be about 10 quid difference on a 200k mortgage.

My first mortgage was £34.5k & I didn't have a lease car, store cards, credit cards, catalogue bills and all the other buy-now-pay-later things that seem so common now.
Maybe I'm just a miserable old bugger, though.

Same here - £32k in 1983, - then watched the interest rates soar through the roof

[DeejRC]

Damn. Knew I should have started looking at the mortgage renewal deals last month.

[Joe5y]

What effect will this have on mortgage rates now?

I ask purely out of curiosity as I fixed mine last month with Santander for 5 years at 0.93%

[richardxjr]

Joe5y said:

What effect will this have on mortgage rates now?

I ask purely out of curiosity as I fixed mine last month with Santander for 5 years at 0.93%

Safe to say you timed that extremely well!