Is there a danger of interest rates shooting up again?
Discussion
I know this is a Crystal Ball type question, but thought I'd ask the finance guys on here.
At the moment Im a very happy chappy, all my mortgages are following the Base rate and Im rubbing my hands.
But its left me thinking "what if they reach the dizzy heights of 16% again?"
I am to young to remember it last time but am well aware that it happened.
What do people think? Is it likely? And will they start to increase in 1 year? 2 Years, 5 years, etc, or is it gonna be low for a while?
Cheers
Hoppy
At the moment Im a very happy chappy, all my mortgages are following the Base rate and Im rubbing my hands.
But its left me thinking "what if they reach the dizzy heights of 16% again?"
I am to young to remember it last time but am well aware that it happened.
What do people think? Is it likely? And will they start to increase in 1 year? 2 Years, 5 years, etc, or is it gonna be low for a while?
Cheers
Hoppy
Hoppy2008 said:
rich1231 said:
Not soon
but no one can be certain of anything in this climate... well apart from they are about to be cut again
Cheers rich.but no one can be certain of anything in this climate... well apart from they are about to be cut again
I know its an almost impossible question to answer mate, but define "not soon"
IN the meantime they certainly wont be shooting up in the next year or so. YOu dont really need to be an expert to know that.
blindswelledrat said:
Hoppy2008 said:
rich1231 said:
Not soon
but no one can be certain of anything in this climate... well apart from they are about to be cut again
Cheers rich.but no one can be certain of anything in this climate... well apart from they are about to be cut again
I know its an almost impossible question to answer mate, but define "not soon"
IN the meantime they certainly wont be shooting up in the next year or so. YOu dont really need to be an expert to know that.
anonymous said:
[redacted]
There, wasnt so hard was it?I do have multiple mortgages, and I did my research. I could also afford to cover the mortgages if they did rise to those mentioned, all my properties have a lot of equity and I would not be forced to sell if things went tits up, so am fairly confident in my situation.
I was merely after some opinions, that is all.
Thanks for your reply, and no offence was meant in my edit.
cheers
Hoppy
Will interest rates go up again soon?
It depends what the Prime Mentalist does.
If he believes that 'fiscal stimulus' requires borrowing squillions to pass on as tax cuts - yes, interest rates will have to rise.
Why? Well, to do that, the government will have to go to the money markets to sell Government gilts. Problem is, there is no gold as such to shore up the debt; he sold that to stupidly low prices.
Usually the currency tanks when a UK Government borrows too much money, the UK £ is a minor reserve currency. Without gold reserves to 'harden' it up, the £ loses value quickly, importing inflation.
In fact the £:$ and £:Euro has slid very badly recently. So to make the gilts attractive to overseas investors - interest rates would go up.
The best course of action would be to look at the ridiculous levels of government spending (like £50bn+ on quangos) and make some serious cutbacks, leave defence, education and health alone and get medieval on the rest.
Then pass that on the saving as tax cuts.
To really get the economy moving, a 1-2% GDP tax cut is required. So about £30bn quids worth.
My advice, don't hold your breath.
It depends what the Prime Mentalist does.
If he believes that 'fiscal stimulus' requires borrowing squillions to pass on as tax cuts - yes, interest rates will have to rise.
Why? Well, to do that, the government will have to go to the money markets to sell Government gilts. Problem is, there is no gold as such to shore up the debt; he sold that to stupidly low prices.
Usually the currency tanks when a UK Government borrows too much money, the UK £ is a minor reserve currency. Without gold reserves to 'harden' it up, the £ loses value quickly, importing inflation.
In fact the £:$ and £:Euro has slid very badly recently. So to make the gilts attractive to overseas investors - interest rates would go up.
The best course of action would be to look at the ridiculous levels of government spending (like £50bn+ on quangos) and make some serious cutbacks, leave defence, education and health alone and get medieval on the rest.
Then pass that on the saving as tax cuts.
To really get the economy moving, a 1-2% GDP tax cut is required. So about £30bn quids worth.
My advice, don't hold your breath.
215cu said:
Will interest rates go up again soon?
It depends what the Prime Mentalist does.
If he believes that 'fiscal stimulus' requires borrowing squillions to pass on as tax cuts - yes, interest rates will have to rise.
Why? Well, to do that, the government will have to go to the money markets to sell Government gilts. Problem is, there is no gold as such to shore up the debt; he sold that to stupidly low prices.
Usually the currency tanks when a UK Government borrows too much money, the UK £ is a minor reserve currency. Without gold reserves to 'harden' it up, the £ loses value quickly, importing inflation.
In fact the £:$ and £:Euro has slid very badly recently. So to make the gilts attractive to overseas investors - interest rates would go up.
The best course of action would be to look at the ridiculous levels of government spending (like £50bn+ on quangos) and make some serious cutbacks, leave defence, education and health alone and get medieval on the rest.
Then pass that on the saving as tax cuts.
To really get the economy moving, a 1-2% GDP tax cut is required. So about £30bn quids worth.
My advice, don't hold your breath.
Thanks for the detailed answer.It depends what the Prime Mentalist does.
If he believes that 'fiscal stimulus' requires borrowing squillions to pass on as tax cuts - yes, interest rates will have to rise.
Why? Well, to do that, the government will have to go to the money markets to sell Government gilts. Problem is, there is no gold as such to shore up the debt; he sold that to stupidly low prices.
Usually the currency tanks when a UK Government borrows too much money, the UK £ is a minor reserve currency. Without gold reserves to 'harden' it up, the £ loses value quickly, importing inflation.
In fact the £:$ and £:Euro has slid very badly recently. So to make the gilts attractive to overseas investors - interest rates would go up.
The best course of action would be to look at the ridiculous levels of government spending (like £50bn+ on quangos) and make some serious cutbacks, leave defence, education and health alone and get medieval on the rest.
Then pass that on the saving as tax cuts.
To really get the economy moving, a 1-2% GDP tax cut is required. So about £30bn quids worth.
My advice, don't hold your breath.
Hoppy
Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff