Thursday, July 5, 2007

As Expected – IR up to 5.75%

Monetary Policy Committee

It's official - IR's up to 5.75%

Posted by uncle chris @ 12:06 PM (433 views)
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13 thoughts on “As Expected – IR up to 5.75%

  • C'mon Correction says:

    Yet more good news for savers, bad news for mortgage holders. It would seem that 6% is a dead cert this year now. I think we’re likely to see the effects over the coming months of all five rate rises, which makes me doubt 6.25% until spring 08.

    If Sterling slackens now (expect lots of hot air from BOE soon to keep money markets interested), I think inflation could shoot up over 3% again.

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  • Well! I’d never had guessed!! 😉

    This has to be the most predictable outcome ever!

    Wimps to the fore….

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  • It will be interesting to see if anyone in the MPC argued for a .5% increase. Unlikely, but possible.

    Wait for the howls of anguish and derision from the MSM.

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  • Planning4acrash says:

    Finally. Rates may not have peaked, but they are starting to have some weight now, I feel, gaining some credibility. It will be interesting to see the fall out. The crucial test is, where will rates be during the Autumn at the traditional queit period for the housing market, at the moment when all those millions re-mortage after the end of cheap fixed rates. I am becoming sick of coming into work now, waiting for a crash, its like, with prices (in general) going up as they are and no sight of a window into property, it feels like there’s little reason or reward for working hard!

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  • Bubbles. . . says:

    Does anyone know what will happen to bank official rates on mortgages. Is the variable rate at a bank 2% above base? That means 7.75% on a typical varible rate mortgage? Intresting times ahead for all the people coming of low 4.39% fixes!!! What are they going to do???

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  • Bubbles. . . says:

    What happens to variable rates? is that not 2% above base rate?? so 7.75% real intrest rate then..Where can I put money to get savings return of that much? Forget houses thats so last year…

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  • Come on guys. You got what you wanted. Where are the comments? Eh everybody, there has been a rise in rates, horray!

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  • It’s OK, it’s OK…. calm down, calm down.

    Maddison says this is only temporary and rates will soon be down to zero percent or less and the housing boom will start again.

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  • Lifes2short4shit says:

    I wonder how many of the people on here who are cheering at the rate rise will lose their job as a result.

    I do wonder about the motives of people who are cheering i.e people who have sold and are renting so when the crash comes they can get a bigger place kinda sounds like profiteering from the houseing market to me.
    I doubt they are all FTB’s who work in factorys that cant afford a place………I suspect alot are part of the “want somthing for nothing” generation that this country has spawned.

    Good Honest Hard working people are being affected really badly by these rate increases and you guys are cheering.

    You should wake up and look in the mirror I doubt you would really like what you see.

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  • dohousescrashinthewoods says:

    I think the bank did a cracking PR job, as they did for the last increase.
    It was all over the BBC this morning with just enough uncertainty to disguise the message.

    To be fair, if they hadn’t raised we would all have been howling for their blood, so fair play to them. It may be too much, too late – too late to avoid a meltdown and too much for consumers to handle, but “wait-and-see” has backed them into a corner and the tide has cut them off. They can’t get out without getting their feet soaked.

    Did gordie-pants order rates to be kept low? Who knows, the chances of hearing the truth are effectively nil, but if he did, he cooked his own goldilocks goose and poor Darling won’t last the year.

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  • The markets are not fooled and probably realise that the UK is going to catch a cold, trouble is will it turn out to be the flu?

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  • Lifes2short4shit…does that mean you don’t find time to go toilet then? You must walk funny! 🙂

    Seriously, you do have a point that these rate rises are going to cause a lot of hardship and that could well include people posting on this site, and/or their families. However, I don’t think many posters are just trying to profiteer – many of us (me included) haven’t been able to buy our first house, let alone been able to sell at a profit to sit and rent.

    As for those good hard working people – that includes all the priced-out FTBs you know. And runaway house prices have done a lot of harm; even many of those homeowners who have “profited” on paper are now unable to afford to trade up, and have all their adult children either still living with them or “borrowing” thousands of pounds for a deposit on their own place. There are winners and losers whether prices are rising or falling, so let us be happy that we may (if we keep our jobs, which we might not as you point out) finally be on the winners side for a while! And don’t be fooled – booms always overshoot up, so they always overshoot down too – there would have been a general “crash” anyway (not just in house prices) from all this excess of liquidity, raising interest rates just makes it happen sooner. The central banks and governments shouldn’t have let it happen in the first place – that would have been the only real way to save all the upcoming pain – so you’re right to be angry but you’re directing it at the wrong people.

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