Interest rates going up soon...

[BlackLabel]

“UK inflation set to hit five-year high, raising heat on interest rates
Experts predict figure of 3% for September, adding to pressure on Bank of England to hike rates for first time in decade”

https://www.google.co.uk/amp/s/amp.theguardian.com...

[Don]

An increase in Interest Rates would actually be good for me.

We're mortgage free and have savings. Not much return on them at the moment.

[craigjm]

BlackLabel said:

“UK inflation set to hit five-year high, raising heat on interest rates
Experts predict figure of 3% for September, adding to pressure on Bank of England to hike rates for first time in decade”

https://www.google.co.uk/amp/s/amp.theguardian.com...

Problem is that most of that inflation is due to various issues with the pound post brexit and many observers now think we are at the tail end of that and inflation will fall. If we raise rates now it would lead to a fall in demand and that’s the last thing the economy needs right now. The committee are stuck between a rock and a hard place but I think they will wait to see what happens with inflation and then if there is the need for a rise it will be in January.

[menousername]

craigjm said:

Problem is that most of that inflation is due to various issues with the pound post brexit and many observers now think we are at the tail end of that and inflation will fall. If we raise rates now it would lead to a fall in demand and that’s the last thing the economy needs right now. The committee are stuck between a rock and a hard place but I think they will wait to see what happens with inflation and then if there is the need for a rise it will be in January.

I read that BoE expect it to continue to increase a bit further. Oil being the main driver.

And that downward pressure on clothes and air fares are what kept it down to 3% this time.

[craigjm]

menousername said:

I read that BoE expect it to continue to increase a bit further. Oil being the main driver.

And that downward pressure on clothes and air fares are what kept it down to 3% this time.

I guess we will see soon enough

[mondeoman]

Fuel prices rose during September, are now going back down.

Where is the wage inflation, the real driver of inflation rates. No wage rises, no one can afford interest rate rises, no matter what figure inflation hits.

[BlackLabel]

“The Bank of England will deliver one of the most closely watched interest rate decisions since the financial crisis later on Thursday.

Economists and investors are expecting the first increase in a decade.”

https://www.google.co.uk/amp/s/www.bbc.co.uk/news/...

[So]

BlackLabel said:

“The Bank of England will deliver one of the most closely watched interest rate decisions since the financial crisis later on Thursday.

Economists and investors are expecting the first increase in a decade.”

https://www.google.co.uk/amp/s/www.bbc.co.uk/news/...

They can't not put them up, can they?

They've been saying they will, the data iss there and it's just before Christmas.

[Bigends]

Don said:

An increase in Interest Rates would actually be good for me.

We're mortgage free and have savings. Not much return on them at the moment.

Likewise - when I had a mortgage I was paying 15 - 16% interest. Have no mortgage now but have some savings that I'm making nothing on - so get them rates up

[So]

Bigends said:

Don said:

An increase in Interest Rates would actually be good for me.

We're mortgage free and have savings. Not much return on them at the moment.

Likewise - when I had a mortgage I was paying 15 - 16% interest. Have no mortgage now but have some savings that I'm making nothing on - so get them rates up

I don't think you should rely upon any meaningful rises in the near future. If we see a rise today, it will be largely symbolic I think and you can look forward to losing it again, probably as a result of Brexit.

[turbobloke]

So said:

Bigends said:

Don said:

An increase in Interest Rates would actually be good for me.

We're mortgage free and have savings. Not much return on them at the moment.

Likewise - when I had a mortgage I was paying 15 - 16% interest. Have no mortgage now but have some savings that I'm making nothing on - so get them rates up

I don't think you should rely upon any meaningful rises in the near future. If we see a rise today, it will be largely symbolic I think and you can look forward to losing it again, probably as a result of Brexit.

Yes, quite possibly so, with the outlook worsened by prolonged negative sentiment

[stuckmojo]

So said:

They can't not put them up, can they?

They've been saying they will, the data iss there and it's just before Christmas.

this seems the case. Sterling has priced it in.

One can only hope they'll go further in the coming months.

[powerstroke]

If true it will knock the stuffing out of people's christmas spending plans if they think the mortgage is going up in the new year...

[Chris Type R]

Jimboka said:

I took out a tracker in around 2008 with IF. BOE + .59% for the life of the mortgage. No floor.
I guess i'm costing them money.
No point in paying it off now (savings so could clear it) unless they will cut a deal & knock something off!
Do such lenders offer a reduction, for early settlement ?

I was also with IF - it's okay as long as you don't have to move / extend your borrowing. Despite being "transportable", it wasn't of much use when we up-sized. We took out our first mortgage with them in 2004 - on balance they must have made a profit.

[BoRED S2upid]

So said:

BlackLabel said:

“The Bank of England will deliver one of the most closely watched interest rate decisions since the financial crisis later on Thursday.

Economists and investors are expecting the first increase in a decade.”

https://www.google.co.uk/amp/s/www.bbc.co.uk/news/...

They can't not put them up, can they?

They've been saying they will, the data iss there and it's just before Christmas.

Surely they must go up this time sitting on that committee must be the easiest job in the world not doing anything every single quarter.

[turbobloke]

0 or 25 basis points anyone?!

[So]

turbobloke said:

0 or 25 basis points anyone?!

25bp today.

[Chris Type R]

25bp I think.

[BoRED S2upid]

0 again then off for a nice lunch.

[Atomic12C]

turbobloke said:

0 or 25 basis points anyone?!

Hoping for 50 but that maybe too much of a shock for those that are living life on the never never.

50 points would give the economy an amount of room for maneuver if the EU wish to punish us in the brexit divorce.

25 points is more or less the status quo.

But 25 points is better than nothing. Its a start.