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Homeowners could face three interest rate rises this year


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Homeowners were today warned that interest rates could be hiked up to three times this year after the number of people in work hit a record high. Official figures showed that the squeeze on living standards continued in the run-up to Christmas but there were signs that wages were rising.

The pound reached a new post-Brexit high of $1.4119 following the figures, as the City bet on action from the Bank of England faster than expected.  ES

Does BOE has any other option than following the leader?

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An interest rate rise seems likely - most analysts predicting 0.25-0.5% rise in 2018.

Unemployment levels are at their lowest in 40 years. 1.44mil unemployed is almost critical mass and will likely lead to competition in the jobs market. 

Firms will have to raise wages to attract/retain workers offsetting any small increase in mortgage repayments. 

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1 minute ago, fuzzy_bear said:

An interest rate rise seems likely - most analysts predicting 0.25-0.5% rise in 2018.

Unemployment levels are at their lowest in 40 years. 1.44mil unemployed is almost critical mass and will likely lead to competition in the jobs market. 

Firms will have to raise wages to attract/retain workers offsetting any small increase in mortgage repayments. 

Really just look at what happened with Sainsburys this week. Job loses apply for your old job at a lower rate. 

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16 minutes ago, spyguy said:

Nope. If they are doing it in 0.25% increments then they are 4 increases behind.

Should have started last year, raising by 0.25 every 4 months.

While i want this to be true, why does the BOE need to raise rates when the pound is rising against the dollar at the moment? 

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4 hours ago, Maynardgravy said:

Maybe the BOE will ask the DOE to stop bullshitting about the unemployment figures.

 

Jeremy Lyon back in September 

Are we seeing any effect of the leave school at 18 coming into play? It started end of 2015 so will end of school year 2018 see the first batch of youth (not leaving at 16) leave school in increased numbers? Or was that 2017? 

How does the extra 2 years feed into the employment market? 

Edited by macca13
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2 hours ago, macca13 said:

Are we seeing any effect of the leave school at 18 coming into play? It started end of 2015 so will end of school year 2018 see the first batch of youth (not leaving at 16) leave school in increased numbers? Or was that 2017? 

How does the extra 2 years feed into the employment market? 

Very interesting point. it was a pretty good way to delay unemployment figures for 3 years. Delay the flow of workers. 

either way BOE have to play follow the leader. 

unless they have managed to string it out long enough that it’s time for another crisis, and we will quickly head to ‘temporary’ emergency negative rates. 

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9 hours ago, fuzzy_bear said:

An interest rate rise seems likely - most analysts predicting 0.25-0.5% rise in 2018.

Unemployment levels are at their lowest in 40 years. 1.44mil unemployed is almost critical mass and will likely lead to competition in the jobs market. 

Firms will have to raise wages to attract/retain workers offsetting any small increase in mortgage repayments. 

Even though most of the rise in employment figures is due to ''hobby jobs'' or made up self employed jobs or zero hours jobs... all claiming far more in ''Working'' Tax Credits than what they actually earn?

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5 minutes ago, nome said:

Even though most of the rise in employment figures is due to ''hobby jobs'' or made up self employed jobs or zero hours jobs... all claiming far more in ''Working'' Tax Credits than what they actually earn?

It is. But at the momment the stats dont reflect that - for some reason.

 

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The last BoE rates rise lagged the FED rise by 11 months. If this is applied to the FED hikes that followed then expect a hike in Feb, May & Nov. If this does turn out to be true then we need to sack Mark ASAP because his ‘job’ could be replaced with about 5 seconds of programming.

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11 hours ago, rollover said:

Does BOE has any other option than following the leader?

Why did no one see this coming ?

 

url.jpg

 

That's me blowing my own trumpet

 

IRs will rise...carney will keep the show on the road till the start of next year.  Then he'll leave...then it'll collapse.

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11 hours ago, fuzzy_bear said:

Firms will have to raise wages to attract/retain workers offsetting any small increase in mortgage repayments.

Whether firms can raise wages, depends on whether they can pass higher costs to their customers, or find the money from their balance sheet.  Since both customers and firms loaded up on debt this past decade, this seems unlikely.

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6 minutes ago, Bricks n' mortar said:

Whether firms can raise wages, depends on whether they can pass higher costs to their customers, or find the money from their balance sheet.  Since both customers and firms loaded up on debt this past decade, this seems unlikely.

......a vicious cycle then...... can't pay extra for hard work, why does anyone expect people to spend/consume more.....those that would like to spend more are already indebted, debt payments and rent takes up any spare surplus ......those with spare don't want or need ever more, plenty is enough they hoard it and or gamble with it not work for it.......when work doesn't pay.;)

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42 minutes ago, thewig said:

Everything is DEBT as far as the eye can see. Will anyone ever have to pay the DEBT off or will servicing to infinity become the norm? 

Massive devaluations of currency plus new currencies. Gold to $20,000 an ounce +.

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New currency as in cryptos? 

Gold is a weird one, it increases in paper money value as paper money approaches obselescence. So by the time it’s worth twenty k dollar are you going to want twenty k dollar as presumably by then they’ll be handing dollar bill out to children on street corners

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15 minutes ago, TonyJ said:

From what I have read, the only way out of the mess is for a massive global THEFT debt forgiveness program. 

Better idea....creditors take everything from debtors, sell it for what they can.

Thats the way the world works.

There wont be debt forgiveness, just more oppression and war.

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  • 434 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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