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Interest Rate Rises 'certain' To Start With 0.25 Per Cent Hike In Months

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http://www.dailymail.co.uk/money/article-1354089/Interest-rate-rises-certain-start-0-25-cent-hike-months.html?ito=feeds-newsxml

The Bank of England's Monetary Policy Committee meets this week amid clear signs that the countdown to higher borrowing costs has begun.

Money markets are signalling a quarter-point rise in the base rate by May with more to follow, ending the emergency 0.5 per cent level in force since March 2009, the lowest level in the Bank's 316-year history.

Some even expect the MPC to move on Thursday, though April or May is thought more likely, with rates tipped to hit 1.5 per cent by March next year.

It is an extraordinary change in sentiment, given that only a few months ago a bandwagon seemed to be rolling for an extension of the £200 billion moneycreation scheme known as quantitative easing.

And it shows the markets are shrugging off the shock 0.5 per cent plunge in gross domestic product reported by the Office for National Statistics for the fourth quarter of last year.

'A rate rise is definitely on the radar,' said Ian Harwood, chief economist of investment bank Evolution Securities.

'All talk of more quantitative easing, the QE2 option, has evaporated. The evidence so far is consistent with the economy growing at a respectable 0.4 per cent in the first quarter.'

Money market rates suggest a 50/50 chance of a quarter-point rise by the end of April and near certainty of such a rise by the end of May.

The market is looking at another quarter-point rise by the end of October, one more by the end of January and yet another by the end of March next year.

Edited by fellow

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As soon as IR's are raised by even 0.25% it is curtains for house prices. The thoughts of the masses will be of rising interest rates. That is gonna make the market collapse even more than it already has.

Edited by ccc

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Investment scam trickery...

The kind where they say they are > < to getting into whatever it is they are mininig, gold, oil or whatever. They just need $10000 more to drill those final few metres.

The floaty debt slaves are cowed into going onto a higher rate fix.

Read my words interest rates won't go up this side of the 2100.

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Some even expect the MPC to move on Thursday, though April or May is thought more likely, with rates tipped to hit 1.5 per cent by March next year.

The next cycle 'lower high' before plunging again probably.

Then, with the zero bound, it's starts to get a little more interesting.

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In a few months you will be reading stories of interest rate rises being... just a few more months away.

New Jerusalem? Labour always mentioned that, they always said if you wait just a bit longer we will arrive at our new jerusalem or something.

It didn't happen.

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As soon as IR's are raised by even 0.25% it is curtains for house prices. The thoughts of the masses will be of rising interest rates. That is gonna make the market collapse even more than it already has.

Then we will get panicking BoE to reduce rates from 0.75% down to 0.1% ... It is BoE job to manipulate asset prices so it always go up...

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Investment scam trickery...

The kind where they say they are > < to getting into whatever it is they are mininig, gold, oil or whatever. They just need $10000 more to drill those final few metres.

The floaty debt slaves are cowed into going onto a higher rate fix.

Read my words interest rates won't go up this side of the 2100.

8.5 hours to go then.

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Why?

Why ? Because the sheeple are simple beings. Once they start hearing about 'Interest rates rising' their interest in property will fall even further than it has already.

Sentiment is very important. Interest rates rising could well be the money shot.

john_holmes_wadd_shrunk.jpg

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If rates don't rise soon there'll be no room for cuts when the double dip hits. Only option will be the printing press again then we may as well get Mugabe in to run things.

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The time in the UK?

the time in mogadishu?

of course you are correct but this is a multinational board with people from as far flung places as plymouth

Edited by Tamara De Lempicka

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  • 311 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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