Jump to content
House Price Crash Forum
waitingscot

Kiss Goodbye To Your Interest Rate Rise

Recommended Posts

No chance of an Interest rate rise now what with GDP falling.

The fall might be "unexpected" and "due to the weather" but as night follows day the response will be to keep Interest rates at an all time low.

I think we are headed for financial oblivion. Apart from house prices of course. They will probably hold up, for gawd sake. :rolleyes:

Share this post


Link to post
Share on other sites

No chance of an Interest rate rise now what with GDP falling.

The fall might be "unexpected" and "due to the weather" but as night follows day the response will be to keep Interest rates at an all time low.

I think we are headed for financial oblivion. Apart from house prices of course. They will probably hold up, for gawd sake. :rolleyes:

Inflation on the cost of living will stop house prices rising, and the difficulty in getting credit., and of curse increasing unemployment................ but oblivion is on the horizon.

Edited by Patfig

Share this post


Link to post
Share on other sites

No chance of an Interest rate rise now what with GDP falling.

The fall might be "unexpected" and "due to the weather" but as night follows day the response will be to keep Interest rates at an all time low.

I think we are headed for financial oblivion. Apart from house prices of course. They will probably hold up, for gawd sake. :rolleyes:

Given the number of people predicting interest rates at zero a year before it happened was less than one, it seems pretty pointless predicting what they might be this time next year, a shock took them to 0 , another shock could take them to 10 just as quicky or they could just stay at zero or not

Share this post


Link to post
Share on other sites

No chance of an Interest rate rise now what with GDP falling.

quite right too - there why should we want to dampen non existent internal inflation?

Share this post


Link to post
Share on other sites

A possible IR hike has already generated alot of MSM coverage. I doubt that amongst reporting of today's news, the reduce likelihood of an IR hike will get featured as much. Yes, it's all sentiment, but how many cheaper mortgage deals have been pulled in the last week?

Edited by rantnrave

Share this post


Link to post
Share on other sites

No chance of an Interest rate rise now what with GDP falling.

The fall might be "unexpected" and "due to the weather" but as night follows day the response will be to keep Interest rates at an all time low.

I think we are headed for financial oblivion. Apart from house prices of course. They will probably hold up, for gawd sake. :rolleyes:

Probably. At least until the next GDP numbers, in 3 months time.

Unless inflation goes too high meanwhile.

The VAT increase should push inflation even higher. Then, if in 3 months we have another weak GDP number, and high inflation, then sterling should fall even more. This should push imported goods/commodities prices up (including energy and food), pushing inflation higher still. We could have a nasty storm ahead.

Share this post


Link to post
Share on other sites

Might panic some into sizeable price drops this week.

I hope so!

Let's see the mass media coverage of this GDP news on tonight telly news and tomorrow's papers. The weekend papers should be interesting too, particularly the property sections. They haven't been bear enough recently.

Share this post


Link to post
Share on other sites

Interest rate reductions have NOT helped the UK economy - in fact I believe it has had the opposite effect... why am I saying that ?

1). People reliant on interest from savings have had their income slashed, so will not be able to spend the same to stimulate the economy.

2). Low interest rates make the UK NOT an attractive place to invest.

3). Low interest rates reduce the value of sterling so all our imports cost more - including energy, fuel.

4). The BOE is more interested in a short term fix (ie a "consumer led recovery" based on yet more borrowing !) than tackling inflation - their mandate.

5). Low interest rates have slowed down the crash in the housing market, but won't stop prices falling off a cliff eventually. If house prices halved from where they are, people

would actually be able to move and first time buyers could get a foothold in the market. This in turn would result in joiners, electricians, builders getting MORE work as people

improved their property instead of trying to save for a deposit for an overpriced property.

The BOE will not increase rates because they simply do not know what they are doing - a bit like a chimp being given an atom bomb to defuse !

I believe the decision will be taken out of their hands as sterling devalues and inflation really takes off - forget the governments CPI (conned price index !) - REAL

inflation for things we NEED must be pushing 10% now and will increase as the effect of a weak £ takes hold.

Share this post


Link to post
Share on other sites

No chance of an Interest rate rise now what with GDP falling.

The fall might be "unexpected" and "due to the weather" but as night follows day the response will be to keep Interest rates at an all time low.

I think we are headed for financial oblivion. Apart from house prices of course. They will probably hold up, for gawd sake. :rolleyes:

I don't think that very many people here were counting on the MPC putting up rates voluntarily, any time soon.

The situation remains as it was before - near zero rates until market forces intervene to force them to rise.

Share this post


Link to post
Share on other sites

Probably. At least until the next GDP numbers, in 3 months time.

Unless inflation goes too high meanwhile.

The VAT increase should push inflation even higher. Then, if in 3 months we have another weak GDP number, and high inflation, then sterling should fall even more. This should push imported goods/commodities prices up (including energy and food), pushing inflation higher still. We could have a nasty storm ahead.

I fear you are right - batten down the hatches.

Edited by dothemaths

Share this post


Link to post
Share on other sites

No chance of an Interest rate rise now what with GDP falling.

The fall might be "unexpected" and "due to the weather" but as night follows day the response will be to keep Interest rates at an all time low.

I think we are headed for financial oblivion. Apart from house prices of course. They will probably hold up, for gawd sake. :rolleyes:

£ is falling. all imported goods will increase the inflation ...

Share this post


Link to post
Share on other sites

I don't think that very many people here were counting on the MPC putting up rates voluntarily, any time soon.

The situation remains as it was before - near zero rates until market forces intervene to force them to rise.

Its getting that way. UK inflation is coming under worldwide attention.

Share this post


Link to post
Share on other sites

No chance of an Interest rate rise now what with GDP falling.

The fall might be "unexpected" and "due to the weather" but as night follows day the response will be to keep Interest rates at an all time low.

I think we are headed for financial oblivion. Apart from house prices of course. They will probably hold up, for gawd sake. :rolleyes:

What is the difference between 0.5 and 1% when the going rate is/will be min 5% plus fees..... ;)

Share this post


Link to post
Share on other sites

Interest rate reductions have NOT helped the UK economy - in fact I believe it has had the opposite effect... why am I saying that ?

because you have absolutely no experience or qualification in any relevant discipline?

Share this post


Link to post
Share on other sites

Interest rate reductions have NOT helped the UK economy - in fact I believe it has had the opposite effect... why am I saying that ?

1). People reliant on interest from savings have had their income slashed, so will not be able to spend the same to stimulate the economy.

2). Low interest rates make the UK NOT an attractive place to invest.

3). Low interest rates reduce the value of sterling so all our imports cost more - including energy, fuel.

4). The BOE is more interested in a short term fix (ie a "consumer led recovery" based on yet more borrowing !) than tackling inflation - their mandate.

5). Low interest rates have slowed down the crash in the housing market, but won't stop prices falling off a cliff eventually. If house prices halved from where they are, people

would actually be able to move and first time buyers could get a foothold in the market. This in turn would result in joiners, electricians, builders getting MORE work as people

improved their property instead of trying to save for a deposit for an overpriced property.

The BOE will not increase rates because they simply do not know what they are doing - a bit like a chimp being given an atom bomb to defuse !

I believe the decision will be taken out of their hands as sterling devalues and inflation really takes off - forget the governments CPI (conned price index !) - REAL

inflation for things we NEED must be pushing 10% now and will increase as the effect of a weak £ takes hold.

No rate rise. Osborne (We're all in this together) insists on special treatment for Mortgagees and Debtors irrespective of the collateral damage.

Backing away from the measures would lead to higher costs for mortgage holders and those in debt, he told BBC Radio 4.

http://www.telegraph.co.uk/finance/economics/8280664/George-Osborne-budget-cuts-keep-down-interest-rates.html

Edited by Shotoflight

Share this post


Link to post
Share on other sites

Ah - to fix or not to fix. That is the question.

I was looking at NW earlier, 5 yr fix for under 5%. Seemed good but maybe it's worth waiting some more? Who knows.

Expensive house at a low IR or a cheap house at a high one. Which costs more? ;)!

Share this post


Link to post
Share on other sites

Ah - to fix or not to fix. That is the question.

I was looking at NW earlier, 5 yr fix for under 5%. Seemed good but maybe it's worth waiting some more? Who knows.

Expensive house at a low IR or a cheap house at a high one. Which costs more? ;)!

Depends how much above BoE base rate the tracker is. Personally, I'd rather just wait for prices to drop so my capital debt is lower, that's what's really important.

Share this post


Link to post
Share on other sites

Ah - to fix or not to fix. That is the question.

I was looking at NW earlier, 5 yr fix for under 5%. Seemed good but maybe it's worth waiting some more? Who knows.

Expensive house at a low IR or a cheap house at a high one. Which costs more? ;)!

Cheap house every time. Overpay each month and you're mortgage free in 10 years.

Share this post


Link to post
Share on other sites

Ah - to fix or not to fix. That is the question.

I was looking at NW earlier, 5 yr fix for under 5%. Seemed good but maybe it's worth waiting some more? Who knows.

Expensive house at a low IR or a cheap house at a high one. Which costs more? ;)!

neither, it's a tautology between IRs and economic growth

Share this post


Link to post
Share on other sites

Might panic some into sizeable price drops this week.

no chance - rates will now stay the same for at least the next 6 months - meanwhile lots of bankers will be rubbing their hands with glee with all the new Fixed rate customers theyve managed to squeeze a few quid more from.

Share this post


Link to post
Share on other sites

Interest rate reductions have NOT helped the UK economy - in fact I believe it has had the opposite effect... why am I saying that ?

1). People reliant on interest from savings have had their income slashed, so will not be able to spend the same to stimulate the economy.

2). Low interest rates make the UK NOT an attractive place to invest.

3). Low interest rates reduce the value of sterling so all our imports cost more - including energy, fuel.

4). The BOE is more interested in a short term fix (ie a "consumer led recovery" based on yet more borrowing !) than tackling inflation - their mandate.

5). Low interest rates have slowed down the crash in the housing market, but won't stop prices falling off a cliff eventually. If house prices halved from where they are, people

would actually be able to move and first time buyers could get a foothold in the market. This in turn would result in joiners, electricians, builders getting MORE work as people

improved their property instead of trying to save for a deposit for an overpriced property.

The BOE will not increase rates because they simply do not know what they are doing - a bit like a chimp being given an atom bomb to defuse !

I believe the decision will be taken out of their hands as sterling devalues and inflation really takes off - forget the governments CPI (conned price index !) - REAL

inflation for things we NEED must be pushing 10% now and will increase as the effect of a weak £ takes hold.

Agree with your points. To some extent base rates are already less of a factor than rising inflation and static wages.

Share this post


Link to post
Share on other sites

no chance - rates will now stay the same for at least the next 60000 months - meanwhile lots of bankers will be rubbing their hands with glee with all the new Fixed rate customers theyve managed to squeeze a few quid more from.

Fixed for you

Share this post


Link to post
Share on other sites

quite right too - there why should we want to dampen non existent internal inflation?

A weakening external value of the Pound internalises inflation pretty quickly.

Even for the indebted, this is a cost as wages are now set globally and not locally.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.