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Giordano Bruno

Boe Rates Unchanged

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Remember, the inflation we've been consistently experiencing in the teeth of a recession for the last couple of years (and next year too) is nothing to do with the policy of near-zero interest rates and money printing, it's just a temporary effect of the forthcoming VAT increase.

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Hmmm, why don't they f*ck all the MPC off for a while why do they do nothing. Imagine the money saved?

Because they are going to be needed to be able to react very very quickly once it all kicks off.

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Because they are going to be needed to be able to react very very quickly once it all kicks off.

There is a first time for everything.

Edited by Sir John Steed

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And after all this to recapitalise the banks they are still insolvent and mortgagors are still deep under water with house prices showing YoY negative and savers rammed to pay for it. Way to go Merve you prat!!!

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I have to admit i am enjoying this extended mortage holiday... been so long now am starting to forget what it was like to be hit with £1400 a month mortgage.

I switched it to a interest only tracker to get it to below 1K a month in 2005, then when interest rate were cut to 0.5% it fell to just 200 a month, which is even less than my council tax.

Going to be tough when rates go back up to 6%, although i doubt we will see 6% rates before my mortage needs to repaid in 2026.

Still i would prefer a 50% fall in house prices and rates back near 6% than pay the silly asking prices at present.. i want to buy something much bigger at some point.

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Because they are going to be needed to be able to react very very quickly once it all kicks off.

There won't be any quick reactions once it kicks off properly - the inflation will be hailed as a miracle recovery and there will be dire warnings about cutting off the free money before the 'recovery' has taken hold, accelerating the process beyond control.

The authorities see only one way forward - endless chains of bubbles caused by cheap money. The problem is that the last one nearly finished off the system for good. The next is likely to be worse and it will burst much more quickly.

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BOE has no motivation for raising rates.

Two large modifiers for the economy are coming in, VAT changes and public sector cuts. To me it makes sense to evaluate the effect of these before any rate changes, therefore I'd be surprised if there are rate changes before the second half of 2011.

Inflation is manageable. Government cost of borrowing is low. Currency is high against the USD.

To me it makes more sense to keep the private sector moving forwards ready to take up public sector slack than strangle off the recovery with unnecessary rate rises.

The government should keep rate rises for when it really needs to use them.

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meanwhile, long term rates are on the increase

not a surprise to me. I have been predicting rates to say below 3% for the next 5 years and below 1% for the next 2 - 3 years (from now).

Low rates are to help the banks. The banks are charging higher interest rates to customers than ever. It is the rate that people can borrow for rather than the BOE rate that will contain inflation.

TWENTY ONE MONTHS now it has been like this. JESUS!!

And will remain so for another 21 months in likelihood.

God bless lifetime tracker mortgages.

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It always surprises me how long we now have to wait for the minutes of the BOE rate decision.

This delay imho limits the questioning they may receive on the logic behind their decision.

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It always surprises me how long we now have to wait for the minutes of the BOE rate decision.

This delay imho limits the questioning they may receive on the logic behind their decision.

i dont even think or await them anymore its so corrupt.

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It always surprises me how long we now have to wait for the minutes of the BOE rate decision.

This delay imho limits the questioning they may receive on the logic behind their decision.

:lol::lol::lol:

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not a surprise to me. I have been predicting rates to say below 3% for the next 5 years and below 1% for the next 2 - 3 years (from now).

Low rates are to help the banks. The banks are charging higher interest rates to customers than ever. It is the rate that people can borrow for rather than the BOE rate that will contain inflation.

Wrong. Inflation will be (and is being) caused by excess money supply vs goods and services.

And will remain so for another 21 months in likelihood.

The official base rate will be low until the cost of government borrowing goes up. That will likely be out of their control and increased inflation will put upward pressure on bond yields.

God bless lifetime tracker mortgages.

If you are one of the lucky few that got lifetime BoE trackers with low margins then happy days (for now). Too bad that this also implies you borrowed a lot of capital to buy the asset (those sorts of amazing deals were given out when prices were close to the peak) and that capital will have to be paid off.

Personally, with a deal like a mortgage that takes 20-25 years to pay off I've no problems with high rates as long as I'm borrowing relatively low amounts of capital - I can always refinance at some stage in the following decades when rates go lower. It's the need to borrow large amounts of capital that I'm wary of because that capital has to be paid back and rates are more likely to go up from that point, than down.

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If you are one of the lucky few that got lifetime BoE trackers with low margins then happy days (for now). Too bad that this also implies you borrowed a lot of capital to buy the asset (those sorts of amazing deals were given out when prices were close to the peak) and that capital will have to be paid off.

Or it could mean you took advantage of very competitive BoE trackers to get all the equity out of properties that you bought years before and have now invested in higher yielding investments

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  • 407 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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