Thursday, Jan 21, 2010
Why interest rates could rise sooner than you think
MoneyWeek: Why interest rates could rise sooner than you think
With inflation up and unemployment down, you may be forgiven for thinking Britain is out of recession. But the is another threat. The risk of rising interest rates is growing.
Posted by damien @ 12:26 PM (1758 views) Add Comment
23 Comments
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1. Ben said...
Why does this site have to be so negative about everything property related, things are definitley improving in the economy .
2. phdinbubbles said...
"so negative about everything property related"
It's called housepricecrash - wanting house prices to fall to a sensible level is quite positively positive in my opinion, but I presume you have a different opinion?
3. magnaman said...
@ Ben - keeping people out of the market is negative - the economy is and will struggle for many years to come - don't be fooled
@ phdinbubbles - Here! Here!
4. fallingbuzzard said...
The site is negative about property because its not so full of people with large amounts of their assets tied up in property and/or very leveraged up. I disagree with you about the economy, Q1 is looking as weak as last year's Q1 in the finance sector at least. Maybe things are better elsewhere.
5. little professor said...
LOL, we have a new troll to play with, what fun.
Rates will be rising by this summer at the latest. Last month's inflation figures were horrendous, and it's only going to get worse.
6. mark wadsworth said...
Ben is priceless. I think I'll pop over to a BNP blog and ask them why they are so negative about foreigners. Or go to a golfers' forum and point out how stupid I think their hobby is.
7. Crunchy said...
5. New? I always thought that anyone who doesn't see property as the only problem in our fast becoming communist, marxist GLOBE was just one of the same person. Things are looking up for you comrade.
Welcome to HPC Ben. May I excuse the rudeness.
8. Passingthru said...
I'm trying to understand the inflationary figures, and where the inflation is coming from.
Given the detailed economic report posted on here yesterday, the process of de-leveraging appears to have just started i.e. overall debt (government + corporate + household) has fallen slightly, which should start to cause deflation.
I can only think that the 30% devaluation in the purchasing power of sterling has made imports of goods and energy more expensive, and has thus been enough to offset the deflation caused by deleveraging.
I suppose that Mervyn King is correct in that we will see some inflation in the short to medium term (the VAT rise in January will factor into the next set of inflationary figures), followed by deflation as deleveraging continues.
Provided QE doesn't continue to prop up government over spending (i.e. by purchasing gilts) in the long term, I'm thinking that the UK should see deflation for the next few years once this short spike of inflation is over, and therefore allowing interest rates to be left at near zero (although not mirrored by captial requirements and rates of interest offered by banks on mortgage products).
I would be interested to hear other opinions on where the UK goes with inflation and/or interest rates from here.
9. Another Ben said...
I'm a vet an I see buisness continuing to fall away
10. timmy t said...
Ben - why did you even bother to take the time to set up a username and password?
Here's some advice for you - I went on houseprice.co.uk the other day to buy a new pair of shoes... bl00dy useless... nothing but house prices... Don't bother...
11. cat and canary said...
yeah, and i came here looking for coverage about Katie and Pete's break-up, and i'm thoroughly disappointed. Lamentous
12. happy mondays said...
@ mw, & i thought i was the only one that thought house prices are too high & golf is not a sport but is bloody boring, next you will be saying you don't understand why dart players get paid so much... Anything in my books where you can spark up a fag & down a pint whilst playing is NOT a sport...lol
13. cat and canary said...
...ah but the key sporting aspect with darts is maintaining your aim with all that smoke in the room whilst downing a pint
14. timmy t said...
Happy Mondays - we'll have to differ on that one... Sparking up a fag and downing a pint is my definition of sport.
15. mark wadsworth said...
But the poor darts players aren't allowed to smoke any more, are they?
PS, I never said that golf wasn't a sport, it clearly is, just like darts, it's just that I find golf pointless but I respect darts players.
@ C&C, "Katie & Pete's break-up"??? Good grief, this week we're talking about "Katie & Alex's on-off relationship". Get with the plot!
16. timmy t said...
MW - all the credibility you ever had with punters on this site just vanished!
17. mark wadsworth said...
TT, why? Don't say she's dumped him for good this time? Who's she going out with now?
18. cat and canary said...
haha, what???!! MW, I can't believe it, she's moved on already! Must rush out to buy OK magazine!
OMG, you're right, http://www.ok.co.uk/celebnews/view/13832/Katie-and-Alex-in-club-brawl/
---
my credibility in shreds too!
19. techieman said...
ok Ben please tell us why everything is improving and the basic tenor of this site and the majority of the people's view on it are flawed. Not optimistic / pessimistic or negative or positive but flawed.
Really im just interested in your view. Promise not to have a go or anything.
20. Lois1 said...
Go and buy a house then Ben!
21. Willing said...
@12 Mark W etc. etc.
Darts & Golf.....as sports???!!! Surely not.....! You can't call anything a sport round where I live unless someone is likely to get hurt or a cute furry animal dies (that said some of them cute furry things are rather tasty).
22. cynicalsoothsayer said...
"Why does this site have to be so negative about everything property related, things are definitley improving in the economy ."
Things improving in the economy is when people need to move house to a new job. Then they'll have to sell forcing house prices down.
23. freemanphil said...
Well, things are getting better, and worse at the same time. Councils are being forced to reduce spending, that is great, but, money has instead been shifted to parasitic bankers and to the military industrial complex, so, we are not benefiting from the deflation of local government, we are just loosing services and jobs, and we get to pay for the pleasure.