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The Masked Tulip

Where Now For Interest Rates?

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Moneyweek this week has an interesting article looking at the global credit crunch and house prices. Tucked away in that article, towards the end, is a small paragraph that states they expect to see further interest rate cuts.

There is little doubt that the US Fed is going to drop rates further in the coming months, if not weeks, but do a quick search for 'interest rates' on google news and you will see banks across the globe either holding or putting up interest rates. Several central banks are expected to put theirs up again in the coming months.

The exception, so far, appears to be the European Central Bank - still holding - and our own BOE. Which way now for the BOE and UK interest rates? Can King possibly keep UK IRs on hold whilst the US is going down?

Or is King trying to keep his ammunition dry for what is heading towards the UK economy later in 2008 and 2009?

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Seeing how Gordon is now sucking up to the French President I reckon we might start following the ECB directive and keep them as is and break away from the yanks as I think Gordo thinks Europe will not be as badly effected by the credit crunch so will move into bed with them to try and save his reputation

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Sarkozy will be gone soon. Most of the French think he is a borderline Fascist. They're not as keen on Fascists as we are in the UK, for some reason.

However, interest rates are headed only one way, and that is up. It might not be the BoE base rate, but the rate we actually get to borrow at is only going one way.

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Seeing how Gordon is now sucking up to the French President I reckon we might start following the ECB directive and keep them as is and break away from the yanks as I think Gordo thinks Europe will not be as badly effected by the credit crunch so will move into bed with them to try and save his reputation

Moving into bed with the French President - hope that includes his wife? :unsure:

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Sarkozy will be gone soon. Most of the French think he is a borderline Fascist. They're not as keen on Fascists as we are in the UK, for some reason.

However, interest rates are headed only one way, and that is up. It might not be the BoE base rate, but the rate we actually get to borrow at is only going one way.

Seems a shame that this is the case, and yet the rates we can save are continue to go down....

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Yep, banks win both ways. If you are a saver it looks like fixing savings for 12 months is sensible now. If you are a borrower... then you are screwed... but only slightly more than savers.

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  • 298 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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