Interest Rates Predicted To Rise Very Soon

[midlandslad]

Where are they showing 2.75% base for next year?

UK gilts are currently suggesting 2.02% for next year.

Central Bank Watch: BOE & ECB Interest Rate Expectations Update

Bank of England rate hike odds are rising again, while rates markets are likewise more aggressive about the European Central Bank.

www.dailyfx.com

 

[jackrussell101]

Central Bank Watch: BOE & ECB Interest Rate Expectations Update

Bank of England rate hike odds are rising again, while rates markets are likewise more aggressive about the European Central Bank.

www.dailyfx.com

Interest rates are likely to rise by much less than most people are predicting - University of Liverpool News

Inflation was already a serious problem thanks to the bottlenecks in the global supply chain caused by the COVID-19 pandemic. But following Russia’s brutal invasion of Ukraine, and the effect on oil and gas prices, inflationary pressures now look a whole lot worse.

www.google.com

 

[midlandslad]

Interest rates are likely to rise by much less than most people are predicting - University of Liverpool News

Inflation was already a serious problem thanks to the bottlenecks in the global supply chain caused by the COVID-19 pandemic. But following Russia’s brutal invasion of Ukraine, and the effect on oil and gas prices, inflationary pressures now look a whole lot worse.

www.google.com

When was that published?

 

[kiwi pom]

If you got a mortgage for a house today, what sort of interest rates would you pay?
A quick look here seems to be 4 or 5%

 

[cattleman123]

If you got a mortgage for a house today, what sort of interest rates would you pay?
A quick look here seems to be 4 or 5%

The house price bubble is my view will be showing signs of popping come the back end....everyone is going to have less cash due to higher costs and you would think that this time it will effect house prices, be limited at the outset as people just wont be selling....but in the end it will from where i am sitting have a major effect.

 

[hoff135]

The house price bubble is my view will be showing signs of popping come the back end....everyone is going to have less cash due to higher costs and you would think that this time it will effect house prices, be limited at the outset as people just wont be selling....but in the end it will from where i am sitting have a major effect.

If rates keep rising then I can't see how they can do anything but fall, people who qualified for a mortgage at 3% won't qualify at 6%. Strong demand is worth sweet fa if you don't have the money or can't borrow it.

 

[jackrussell101]

When was that published?

March, so admittedly 3 months ago, but if you read it, the author states that whilst inflation may increase further, so do the economic downside risks, just look at the news this morning.

Ok, I am only in my 30s, so I have never witnessed higher interest rates, but that doesn't mean I can't have an opinion.

Logically what good will higher interest rates do to the current situation? Jack them up to 4, 6, 8 or 10%. There still will be a shortage of food and energy. Putins invaded Ukraine, it is what it is.

So long as the inflation doesn't get into wages, then I can't see base rate going over 3%. Obviously if it did, then that's a completely different economic beast, but personally I'd see a nasty recession more likely.

The current economic environment of high asset prices and high debt levels would be toast with higher interest rates.

The masses would soon start to be laid off and the doll queues would be miles long.

My guess is we are in for a period of sustained stagflation over the next 2 to 3 years.

I believe its a good time to be a borrower, in my opinion they can't put the interest rate above the inflation rate, so any debt is nicely being eroded, which is funnily enough exactly what would suit the government and BOE.

All my opinion of course and quite happy to be proved wrong!

 

[hoff135]

March, so admittedly 3 months ago, but if you read it, the author states that whilst inflation may increase further, so do the economic downside risks, just look at the news this morning.

Ok, I am only in my 30s, so I have never witnessed higher interest rates, but that doesn't mean I can't have an opinion.

Logically what good will higher interest rates do to the current situation? Jack them up to 4, 6, 8 or 10%. There still will be a shortage of food and energy. Putins invaded Ukraine, it is what it is.

So long as the inflation doesn't get into wages, then I can't see base rate going over 3%. Obviously if it did, then that's a completely different economic beast, but personally I'd see a nasty recession more likely.

The current economic environment of high asset prices and high debt levels would be toast with higher interest rates.

The masses would soon start to be laid off and the doll queues would be miles long.

My guess is we are in for a period of sustained stagflation over the next 2 to 3 years.

I believe its a good time to be a borrower, in my opinion they can't put the interest rate above the inflation rate, so any debt is nicely being eroded, which is funnily enough exactly what would suit the government and BOE.

All my opinion of course and quite happy to be proved wrong!

It's not just energy and food. You have soaring rent costs in different parts of the world, they wee happening before ukraine and don't have much to do with food prices.

There is unprecidented demand due to the free money of the past 2 years. While some at the bottom struggled the rest came out of the pandemic loaded with money

 

[jendan]

Back when?
I can’t really remember where interest rates were before the early eighties when we bought this farm and interest rates were in the mid to high teens.
But dad sold land then that he had bought in the 60’s for more in thousands per acre than he paid for it in hundreds per acre 15/20 years previously, add a 0 on the prices on simple terms or 10 times the amount he paid for it.
Nearly 40 years on it certainly isn’t worth 10 times what it was bought for, probably half that at best. So land hasn’t increased by anything like the percentage it did through the 70’s in the last 4 decades although the increase in pounds is greater, much of that increase having come since interest rates have been lower in the last 20 years or so.

Land prices doubled between 1972-1974 when we joined the EEC. A fixed rate AMC 25 year mortgage at end of 1973 was 14%. Land prices have risen dramatically in the last 6 months by almost 50%