View Full Version : Financial wizards....interest rates???
Do you expect them to rise in the next say 3 to 5 years? Partic with the Tories in charge, all the oldies having had no interest in all their savings now for years.
Should we be rapidly trying to pay off our mortgages? Will we see 5% again like we always have historically? http://www.ccmb.co.uk/images/smiley_icons/sherlock.gif
Loya Jirga
20-02-16, 09:06
Do you expect them to rise in the next say 3 to 5 years? Partic with the Tories in charge, all the oldies having had no interest in all their savings now for years.Interest rates will rise in the next 3 years. I am going for a 2 year tracker when we move house. Then to a fixed rate over 5 or 10 years if rates are at 2% 2 years from now. If you can afford to, pay off as much as you can whilst rates are this low because they will never be this low again once they start to rise.
bear grylls
20-02-16, 09:16
Do you expect them to rise in the next say 3 to 5 years? Partic with the Tories in charge, all the oldies having had no interest in all their savings now for years.http:// www.theguardian.com/business/economics-blog/2016/jan/15/jane t-yellen-federal-reserve-interest-rate-blunder (http://www.theguardian.com/business/economics-blog/2016/jan/15/janet-yellen-federal-reserve-interest-rate-blunder)
Do you expect them to rise in the next say 3 to 5 years? Partic with the Tories in charge, all the oldies having had no interest in all their savings now for years.Thankfully, I had a 10% fixed rate. http://www.ccmb.co.uk/images/smiley_icons/tong.gif
It's hard to tell, the only growth we have had since the financial crisis of 2008 has been through Osborne's conjuring tricks. We are engulfed with inflated asset prices, and the underlying debt problems still remains. I think another big bang is more likely.
Short term most analysts are saying they will stay stable.
A year or so of staying as they are then a slow increase over the 2-3 years after.
It's all guesswork though.
A year ago they were forecasting rises by now.
Unrest in Middle East, Euro vote etc.. can all effect things- and not always in the way economists expect
Leave yourself plenty of room for changes.
Short term most analysts are saying they will stay stable.Euro collapse etc..
If you want an idea of where interest rates will go then look at the banks long term fixed rates. Banks tend to get it right in the long term so if they're offering 5% over 20 years then you can bet their economists are predicting long term rates at around 2% allowing for typical 3% NII
If you want an idea of where interest rates will go then look at the banks long term fixed rates. Banks tend to get it right in the long term so if they're offering 5% over 20 years then you can bet their economists are predicting long term rates at around 2% allowing for typical 3% NIIThere are too many variables
If you want an idea of where interest rates will go then look at the banks long term fixed rates. Banks tend to get it right in the long term so if they're offering 5% over 20 years then you can bet their economists are predicting long term rates at around 2% allowing for typical 3% NII
They are especially good at getting them right when they are fixing ( manipulating) them πThe economists at banks tend to get the long term forecasts pretty close when all things are considered.
The MPC at the BoE is independent to the government. Inflation is below target so it should go up but that low inflation is due to the supply side and interest rates mainly affect demand. Also, we are expected to hit target inflation (2%) by the time any change in interest rates would take effect.
Btw Feedy, I thought Carney scrapped forward guidance
Ring_Peace
20-02-16, 10:56
They should go down. There is so much currency that tighter controls such as smaller denominations, cash withdrawal restrictions and negative interest rates are coming to an economy near you shortly.
The system is broken, we just won't face reality as long as we have the usual psychopaths in charge.
Revolution or currency reset...two tough choices for the next generation; but as long as the old regime maintain their control (as they've done for the last century) interest rates will artificially go up short term for the last current economic dynasty hoorah.
Put it this way, compare the material and labour costs to build a house versus what it will actually sell for. It does not compute. They broke the system 15 odd years ago and it can't be fixed. They've tried, and failed.
Modern football/wage structures/middle men and owners is a microcosm with similar parallels to the modern economy.
In my opinion.
The MPC at the BoE is independent to the government. Inflation is below target so it should go up but that low inflation is due to the supply side and interest rates mainly affect demand. Also, we are expected to hit target inflation (2%) by the time any change in interest rates would take effect. I'm not referring to the grand old lady. I am talking about the economists at the banks themselves.
The MPC at the BoE is independent to the government. Inflation is below target so it should go up but that low inflation is due to the supply side and interest rates mainly affect demand. Also, we are expected to hit target inflation (2%) by the time any change in interest rates would take effect.
Btw Feedy, I thought Carney scrapped forward guidanceSorry about the misinterpretation http://www.ccmb.co.uk/images/smiley_icons/thumbup.gif
The MPC at the BoE is independent to the government. Inflation is below target so it should go up but that low inflation is due to the supply side and interest rates mainly affect demand. Also, we are expected to hit target inflation (2%) by the time any change in interest rates would take effect.
Btw Feedy, I thought Carney scrapped forward guidance
I'm not referring to the grand old lady. I am talking about the economists at the banks themselves.http://www.ccmb.co.uk/images/smiley_icons/thumbup.gif
If you want an idea of where interest rates will go then look at the banks long term fixed rates. Banks tend to get it right in the long term so if they're offering 5% over 20 years then you can bet their economists are predicting long term rates at around 2% allowing for typical 3% NII
They are especially good at getting them right when they are fixing ( manipulating) them π
Saying that, in general I don't think they are THAT good at forecasting.Not exactly a brilliant record !
Hopefully they'll start going up in 6 years and 1 months time. In the meantime they can stay where they are.
The MPC at the BoE is independent to the government. Inflation is below target so it should go up but that low inflation is due to the supply side and interest rates mainly affect demand. Also, we are expected to hit target inflation (2%) by the time any change in interest rates would take effect.
Btw Feedy, I thought Carney scrapped forward guidanceOi, leave my Grandma out of it.
The MPC at the BoE is independent to the government. Inflation is below target so it should go up but that low inflation is due to the supply side and interest rates mainly affect demand. Also, we are expected to hit target inflation (2%) by the time any change in interest rates would take effect.
Btw Feedy, I thought Carney scrapped forward guidance
I'm not referring to the grand old lady. I am talking about the economists at the banks themselves. http://www.ccmb.co.uk/images/smiley_icons/hehe.gif http://www.ccmb.co.uk/images/smiley_icons/getmycoat.gif
If you want an idea of where interest rates will go then look at the banks long term fixed rates. Banks tend to get it right in the long term so if they're offering 5% over 20 years then you can bet their economists are predicting long term rates at around 2% allowing for typical 3% NII
They are especially good at getting them right when they are fixing ( manipulating) them π
Saying that, in general I don't think they are THAT good at forecasting.
Very few seem to predict the future accurately.If that is the case then look at the long term fixed rates given 12 months ago with today. LIBOR would be a good place to start. This time last year banks were lending to each other at 0.68%.
Cardiff Irish
20-02-16, 12:16
Ive come to a radical conclusion in my life. I'm not borrowoing to apy for things, I'll earn or save or buy second hand.
I've taken up two part income streams to increase my earnings to supplement job number one.
In a nutshell the financial advice I've given myself 'earn more money'
Ive come to a radical conclusion in my life. I'm not borrowoing to apy for things, I'll earn or save or buy second hand.You're gonna bankrupt our debt based economy!
Cardiff Irish
20-02-16, 12:40
Ive come to a radical conclusion in my life. I'm not borrowoing to apy for things, I'll earn or save or buy second hand.
I've taken up two part income streams to increase my earnings to supplement job number one.You're right, I'm going to take another loan out with First Plus, they have amazing interest rates, honest.
Ive come to a radical conclusion in my life. I'm not borrowoing to apy for things, I'll earn or save or buy second hand.
I've taken up two part income streams to increase my earnings to supplement job number one.
In a nutshell the financial advice I've given myself 'earn more money' Some poor feckless have no choice but to do it aswell. Lots of info there to sift thru. I thought the economy was doing ok so a rise is likely. I will endeavour to rid myself of my last mortgage soon mind.....
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