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Jason

What Will Be The Next Move In Interest Rates?

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What will be the next move in Interest Rates? Up or Down?

Also, if IRs move opposite to what you expect, how would you react (i.e. move your STR funds or FTB deposit)? Discuss...

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I really haven't got a clue. If they go down, I'll probably take more of my money out of cash, if they go up the the housing market will be well and truely screwed - and quickly. So I guess that'll be good news for anyone who's saving for a home.

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I still have my STR funds in US $. If IR go up its HPC sooner rather than later. If IR go down its a pound crash as the entire world is moving up with the B o J the latest to annouce tightening. Sounds like a win-win.

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I think they will be on hold for a long time yet. Then the next move will be up as wage inflation increases as energy prices feed thorugh (maybe not this year tho).

If on Wednesday 4 MPC members did vote for a cut (as the Observer says), I will fix my ISA for a year (as they will most likely go down). I will also buy some more Gold.

If they do go down I'll write to the BoE complaining that they are putting two fingures up to the prudent savers!

I'll also brace myself for another 4-6 month bounce in property prices.

Edited by Jason

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Guest muttley

I voted down.Not that I want them to go down,but I think taht is the way we are heading.If I'm right I'll move more funds out of high(?) interest accounts and into the Stock Market.I might be interested in funds that track foreign markets,particularly Asia.I still think Japan is a little volatile.

I'm sure someone will be along to tell me to put something into gold,but I will only consider this if we get global inflation.

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Jason: can you set up a poll for how many hours people spend on this site? Also, how many are on it during work hours? Thanks, RB

I'm sure you're capable.

Edited by Jason

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Dr,

So does that mean that they will not be able to drop rates as folks who buy the bonds have had enough so unless the yields increase, they will not buy any more.

Is that situation also applicable to the UK?

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The results of this poll sums up the diverse opinion on the direction of interest rates! It's probably the same in the BoE meetings!

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If they go down I'll be gutted.

I will think my savings are being eroded and its been a bit of a waste of time...I might as well have been having fun getting into enormous debt.

Having said that I suppose I'll be quite happy if they are low in a years time when I have to get a mortgage.

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The results of this poll sums up the diverse opinion on the direction of interest rates! It's probably the same in the BoE meetings!

i'd be a bit worried if Mervyn King said that he "ain't got a clue", though

mind you i'd expect it from the Sir John Gieve! :P

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i'd be a bit worried if Mervyn King said that he "ain't got a clue", though

mind you i'd expect it from the Sir John Gieve! :P

True. But look at the last inflation report. Interpretation "It could go anywhere.." The next inflation report on the 15th will be interesting reading.

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Guest Bart of Darkness

Isn't there a gold bubble?

Gold is certainly enjoying a good bull run at the moment. I wouldn't say it was in a bubble as the price is still historically low in relation to other commodities, there's none of the wildly out of kilter pricing that we see in the UK housing market.

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I voted for a rise but I think we'll see rates held where they are for a long time.

I don't think the BOE are a very courageous bunch and probably don't enjoy being in the limelight. They are being bullied by CBI and others for a rate cut. On the other hand they know full well that real inflation is on the up and might have some regard to their integrity and they do like to follow the FED et al.

Looks like they need sound guidance and if that's not coming from the Exchequeur they may well be listening very carefully to Bernanke's report on Wednesday.

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What will be the next move in Interest Rates? Up or Down?

Also, if IRs move opposite to what you expect, how would you react (i.e. move your STR funds or FTB deposit)? Discuss...

Why is there no option to hold interest rates?

Presuming you are talking about the long term though, instead of simply the next move, actually I am expecting some nutcases to now vote for rate cuts and when this causes inevitable problems for the whole thing to go into reverse and go into rises.

When they will try for the next rate cut and how long it will last I don't know but I was very surprised at the split on the MPC committee.

That kind of split looks like an indicator to the market that they intend the next direction for interest rates to be down, although in the long term interest rates will have to rise beyond current levels.

It is looking like complete madness to me now.

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Why is there no option to hold interest rates?

I was being more specific to the next move, excluding all holds (of which I expect there to be many).

Presuming you are talking about the long term though, instead of simply the next move,

Bingo.

Edited by Jason

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  • 302 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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