BOE base rate estimations.
Seeing that the BOE base rate over the last 10 years has historically hovered around the 5%-6% mark,how long do we think that the BOE can be artificially held down at 0.5% ??
It has been at this low rate for a while now,when is it going to start creeping back up again,surely it has too soon??? Hopefully not to the 17% of late 79 though..:freak3: http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp |
Everything depends on the property market.
It's absurd but 'it's too big to fail' |
I wouldn't call the situation absurd considering that a house is generally a persons most expensive purchase.
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Who knows? It all depends on inflation which all depends on pay rises which all depends on government policy which all depends on how well baby Florence Rose Endellion slept the previous night.
Steve |
Seems absurd that they can just lower like this ,for ever
Prooping property prices which are still too high |
Originally Posted by chrispurvis100
(Post 9576345)
I wouldn't call the situation absurd considering that a house is generally a persons most expensive purchase.
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It's called Macro-Economics. :thumb:
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Originally Posted by chrispurvis100
(Post 9576387)
It's called Macro-Economics. :thumb:
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I think the BOE rate will start moving in late 2012. Its very hard to see where it might go, some are saying 10%, others 5 or 6%. Almost impossible to tell.
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Originally Posted by billythekid
(Post 9576440)
I think the BOE rate will start moving in late 2012. Its very hard to see where it might go, some are saying 10%, others 5 or 6%. Almost impossible to tell.
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True, but 5% would mean most people on a tracker have to watch their outgoings, where as 10% would mean you might well not be able to meet the payments.
Does not matter a jot to anyone on a fixed rate though I guess... which is a lot of people. |
Originally Posted by billythekid
(Post 9576458)
True, but 5% would mean most people on a tracker have to watch their outgoings, where as 10% would mean you might well not be able to meet the payments.
Does not matter a jot to anyone on a fixed rate though I guess... which is a lot of people. |
Originally Posted by billythekid
(Post 9576458)
True, but 5% would mean most people on a tracker have to watch their outgoings, where as 10% would mean you might well not be able to meet the payments.
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Never again, 0.5% for eternity.
TX. |
Originally Posted by tony de wonderful
(Post 9576466)
Don't most fixed rates revert to trackers after 2-5 years?
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Originally Posted by Terminator X
(Post 9576628)
Never again, 0.5% for eternity.
TX. Sounds like the "in" phrase just a few years ago. "House prices will never fall" |
Originally Posted by tony de wonderful
(Post 9576319)
Everything depends on the still over inflated property market.
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Originally Posted by stilover
(Post 9576655)
Sounds like the "in" phrase just a few years ago.
"House prices will never fall" TX. |
Originally Posted by Terminator X
(Post 9576667)
:lol1: don't think people actually said that, they just laughed at the doomsayers who'd been predicting falls for over 10 years without success & had been wasting their money paying rent for all that time + not gaining at all from the rises ...
TX. House prices now are like the technology stocks were in the late 90s/early 00s - As you say: great for the people who profited from the speculative gamble, not so good for the economy in general or people who just look at houses as a place to live. |
Originally Posted by gpssti4
(Post 9576629)
No, usually to the banks standard variable rate - which I guess tracks the BoE base rate .............. :wonder: :lol1:
:thumb: |
Glesga - impossible to call it fella which is my point. Some paid rent for 10yrs+ & waited (losers), some bought houses in mid 90s & watched them double in price ish (winners) whilst others bought just before the crash (losers) & are probably in trouble right now albeit low interest rates have softened the blow.
Interest rates are no different, ditto stocks / shares etc etc. TX. |
Originally Posted by Terminator X
(Post 9576692)
Glesga - impossible to call it fella which is my point. Some paid rent for 10yrs+ & waited (losers), some bought houses in mid 90s & watched them double in price ish (winners) whilst others bought just before the crash (losers) & are probably in trouble right now albeit low interest rates have softened the blow.
Interest rates are no different, ditto stocks / shares etc etc. TX. Now we have the huge burden of all these consumer services, etc, that aren't required. Especially since any move higher in interest rates is going to make the situation much worse, as people will have to spend more and more of their income on paying mortgages, so they'll have much less to spend on consumer goods and services. Hence a lot of people will lose their jobs. That would be the doomsday scenario anyway... |
Theres alot of wild speculation of double figure rates within 2 years, uncontrollable inflation, low rates for years to come, deflation. With such complete opposite ends of the spectrum it shows that most of these comments are just headline grabbers.
Rates will rise but unlikely to pass 5% over the next 5 years. Inflation will remain high until the 20% VAT is factored in and when QE has finally washed through the system. End of next year inflation will probably fall back and maybe below the 2% target. |
But at least SNet will still give you 2 for 1 on every post!
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