Interest rates going up soon...

[cuprabob]

25 points rise confirmed

[rover 623gsi]

mondeoman said:

Is this for real or just grand-standing?
http://www.bbc.co.uk/news/business-27825643

Are we really seeing the green shoots of recovery or is this off the back of the London housing boom?

Most predictions become true at some point

[tannhauser]

cuprabob said:

25 points rise confirmed

About fking time.

[Welshbeef]

tannhauser said:

cuprabob said:

25 points rise confirmed

About fking time.

bks

[tannhauser]

Welshbeef said:

tannhauser said:

cuprabob said:

25 points rise confirmed

About fking time.

bks

Hit a nerve have I?

[stuckmojo]

tannhauser said:

About fking time.

Absolutely. Great stuff

[PurpleMoonlight]

How quick will savings rates go up though I wonder.

[Welshbeef]

PurpleMoonlight said:

How quick will savings rates go up though I wonder.

What all of 0.25%?

Even with 10 bags of sand in the bank it’s a mere £25 extra interest a year just enough to buy a new board game.

[tannhauser]

Welshbeef said:

PurpleMoonlight said:

How quick will savings rates go up though I wonder.

What all of 0.25%?

Even with 10 bags of sand in the bank it’s a mere £25 extra interest a year just enough to buy a new board game.

It's a long overdue step in the right direction.

[jonah35]

The direction is now up

That’s the worry for people - the trend is now on the up

Car bubble will pop soon

[tannhauser]

jonah35 said:

The direction is now up

That’s the worry for people - the trend is now on the up

Car bubble will pop soon

Great news on all counts!

[Fittster]

And average wage inflation is matching or beating consumer price inflation?

[btdk5]

jonah35 said:

The direction is now up

That’s the worry for people - the trend is now on the up

Car bubble will pop soon

What trend?

It stayed at 0.25% for all of a year. Prior to that it’s been at 0.50% since 2009.

What impact do you think this is going to have?

[PurpleMoonlight]

Welshbeef said:

What all of 0.25%?

Even with 10 bags of sand in the bank it’s a mere £25 extra interest a year just enough to buy a new board game.

Well I don't have any sand but if I had 100 of them it would be £250.

[BlackLabel]

The way some journalists and commentators are acting you would think that the BoE have just raised rates to 5%.

[jonah35]

btdk5 said:

What trend?

It stayed at 0.25% for all of a year. Prior to that it’s been at 0.50% since 2009.

What impact do you think this is going to have?

Well the trend prior to this rise has been of falling and then static rates. Now rates are rising and likely to keep rising, albeit steadily but the trend is upwards now

Therefore this 0.25% rise isn’t much but people can now see the direction things are going and will think about the next rise and the next so now is when people will be looking at getting out of bloated assets such as m3 csls and so on

Why stay in these types of assets when there is going to be downward pressure on them?

[JagLover]

stuckmojo said:

tannhauser said:

About fking time.

Absolutely. Great stuff

Agreed, and I have a fairly substantial mortgage.

Given the economic climate, and US interest rates starting to rise, interest rates should be at least 1% to start to move toward some monetary normality.

[jonah35]

If they get up to 3% then some people in mortgaged up houses will feel it. 2.75% extra interest on £500k is £14k or so per year - enough to make people think ‘is it worth it’

[Fittster]

jonah35 said:

Now rates are rising and likely to keep rising, albeit steadily but the trend is upwards now

Based on what?

Wage inflation?

Hitting consumers with higher interest rates isn't going to stoke up demand.

[Puggit]

So every time the BoE has held rates steady, the pound has sunk. Now the rate has gone up, the pound has sunk.

Can someone please explain?