Interest Rates rise again
11 January 2007, 01:15 PM
#31
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6 months ago the rate was 4.5% so that's a .75% rise. the same could easily happen in the next 6 months, esp given that inflation shows no sign of slowing. and other .75% rise in 6 months puts us to 6%.
BOE have to adjust the rate to achieve the 2% inflation rate and currently it's looking like 3%, thats 50% higher than desired! Preventing inflation is the bottom line, I don't care two hoots about market crap about futures/selling/shorting etc, I look at the inflation rate, if that keeps on rising then so does interest rates, simple.
11 January 2007, 01:16 PM
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11 January 2007, 01:17 PM
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11 January 2007, 01:18 PM
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11 January 2007, 01:18 PM
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I've historically only gone for 2 year fixed, but the last 3 have gone by so quickly me and the mrs decided 5 was a better choice
11 January 2007, 01:19 PM
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Oh yeah sorry the english version (I assumed you understand it since you were calling rates) is basically that the market expects rises of another 50 basis points by the end of the year, not 125 as you suggest. What I was saying is the market may be wrong by 25 but not by 75!
11 January 2007, 01:24 PM
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Not only that but also the fact is rates go up too much too quickly the cost of manufacturing will go through the roof, jobs will be made redundant and unemployment rates go up. There has to be a balance, not just keeping raising interest rates until the housing market flattens out.
11 January 2007, 01:27 PM
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11 January 2007, 01:28 PM
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Oh yeah sorry the english version (I assumed you understand it since you were calling rates) is basically that the market expects rises of another 50 basis points by the end of the year, not 125 as you suggest. What I was saying is the market may be wrong by 25 but not by 75!
It doesn't matter diddly squat if I 'know what I'm talking about' or not. Inflation is rising and showing little signs of slowing (record xmas sales etc.) and thus interest rates will continue to rise.
Even if rates end up at 6.5% I still happily say I don't know what I'm talking about and you do. However I'd be right and you'd be wrong.....Let's have a little challenge to review in 12 months time. Who's closer to the rate. I say now, 6% as the non-expert. You as the expert say X% and surely you'll end up right, we shall see.
Let's face it, experts do NOT know. they suspect, they predict, they anticipate, they hope but they do NOT know as has been proven in the past. What were your last years predicitions for year end?
11 January 2007, 01:29 PM
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11 January 2007, 01:34 PM
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11 January 2007, 01:35 PM
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11 January 2007, 01:37 PM
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If you read my post you would have noticed I said between 6 and 6.5%. You conveniently took the highest figure for your own ends.
It doesn't matter diddly squat if I 'know what I'm talking about' or not. Inflation is rising and showing little signs of slowing (record xmas sales etc.) and thus interest rates will continue to rise.
Even if rates end up at 6.5% I still happily say I don't know what I'm talking about and you do. However I'd be right and you'd be wrong.....Let's have a little challenge to review in 12 months time. Who's closer to the rate. I say now, 6% as the non-expert. You as the expert say X% and surely you'll end up right, we shall see.
Let's face it, experts do NOT know. they suspect, they predict, they anticipate, they hope but they do NOT know as has been proven in the past. What were your last years predicitions for year end?
It doesn't matter diddly squat if I 'know what I'm talking about' or not. Inflation is rising and showing little signs of slowing (record xmas sales etc.) and thus interest rates will continue to rise.
Even if rates end up at 6.5% I still happily say I don't know what I'm talking about and you do. However I'd be right and you'd be wrong.....Let's have a little challenge to review in 12 months time. Who's closer to the rate. I say now, 6% as the non-expert. You as the expert say X% and surely you'll end up right, we shall see.
Let's face it, experts do NOT know. they suspect, they predict, they anticipate, they hope but they do NOT know as has been proven in the past. What were your last years predicitions for year end?
And if you want my call for the year end I'd say 5.75
11 January 2007, 01:38 PM
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11 January 2007, 01:45 PM
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It's good for my pension and savings and I only have a bit left on my mortgage which will be paid soon.
It is however very bad for UK's heavy industry and manufacturing.
Cheers
Lee
It is however very bad for UK's heavy industry and manufacturing.
Cheers
Lee
11 January 2007, 01:49 PM
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11 January 2007, 02:14 PM
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Davyboy - Your SN tracking skills are second to none!
All I was saying is that the number of times we've wondered if we should have bought, it makes a change to not be worrying about it.
We've moved around an awful lot with various work so buying hasn't been a real option.
Right now, I'm happy to be as we are which makes a change.
I pity those totally mortgaged up to the hilt, which I'm sure none of you wise SN investors are...
All I was saying is that the number of times we've wondered if we should have bought, it makes a change to not be worrying about it.
We've moved around an awful lot with various work so buying hasn't been a real option.
Right now, I'm happy to be as we are which makes a change.
I pity those totally mortgaged up to the hilt, which I'm sure none of you wise SN investors are...
11 January 2007, 02:29 PM
#53
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LOLI feel like I am mortgaged up to the eyeballs - I have just asked to borrow more to spend on imporatant things like paying of credit cards, plasma screens, holidays, cars etc
and my document tells me I am borrowing 75% of the value of the cost of the house.....and that looks scarey.
11 January 2007, 02:39 PM
#54
The flood of cheap European labour has failed to curb inflation hey ,Oh how new labour wish they never gave control to the bank of England
Rising inflation,crumbling public services and taxes spiralling out of control, sounds like classic labour to me.
Rising inflation,crumbling public services and taxes spiralling out of control, sounds like classic labour to me.
11 January 2007, 02:39 PM
#55
The flood of cheap European labour has failed to curb inflation hey ,Oh how new labour wish they never gave control to the bank of England
Rising inflation,crumbling public services and taxes spiralling out of control, sounds like classic labour to me.
Rising inflation,crumbling public services and taxes spiralling out of control, sounds like classic labour to me.
11 January 2007, 02:41 PM
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It's also created a curious echo...
11 January 2007, 02:56 PM
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11 January 2007, 03:00 PM
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11 January 2007, 03:02 PM
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And as for the thread starter - Robin, you are such a hypocrite
If you had a mortgage you'd be ranting about Brown and his useless economic policies