• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Interest rates will go up quicker than anyone expects, ex-Bank of England officials w

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Interest rates will go up quicker than anyone expects, ex-Bank of England officials w

    Sir John Gieve, an ex-deputy Governor, and Charles Goodhart, a previous member of the Monetary Policy Committee, are the most senior economists yet to have opposed the current orthodoxy that rates will stay low for a prolonged period. The warning will come as a relief to savers but as a shock to home owners, many of whom are able to meet their mortgage repayments only because of record low rates of 0.5pc.

    Addressing Fathom Financial Consulting’s Monetary Policy Forum, Sir John said: “I am expecting a recovery – when that is strongly established I’d expect rates to start rising faster than the market currently expects. I wouldn’t be at all surprised to see interest rates at 2.5pc a year from now.”

    More: Interest rates will go up quicker than anyone expects, ex-Bank of England officials warn - Telegraph

    ------------------

    Rates should have been 5-7% already and average house price should have been 3x average salary (75-80k)

    #2
    2.5% is still below even the official inflation rate. Banks will still be being paid to borrow. At least I assume that rate represents the rate banks borrow at.

    Comment


      #3
      Why should you care Alexei? You will still be living in rented as you don't have the cojones to buy your own place!!

      “The period of the disintegration of the European Union has begun. And the first vessel to have departed is Britain”

      Comment


        #4
        Originally posted by TimberWolf View Post
        2.5% is still below even the official inflation rate. Banks will still be being paid to borrow. At least I assume that rate represents the rate banks borrow at.
        My mortgage rate will then be 2.99%.
        Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

        Comment


          #5
          Finally us paid-orf mortgage, saving types will have something to cheer.
          Hard Brexit now!
          #prayfornodeal

          Comment


            #6
            Originally posted by sasguru View Post
            Finally us paid-orf mortgage, saving types will have something to cheer.
            Yeah. You'll be able to blow some serious coin on yet another virtual motorbike!!!

            “The period of the disintegration of the European Union has begun. And the first vessel to have departed is Britain”

            Comment


              #7
              Originally posted by sasguru View Post
              Finally us paid-orf mortgage, saving types will have something to cheer.
              WSGS

              Comment


                #8
                Originally posted by shaunbhoy View Post
                Yeah. You'll be able to blow some serious coin on yet another virtual motorbike!!!

                And a posh shed.
                Science isn't about why, it's about why not. You ask: why is so much of our science dangerous? I say: why not marry safe science if you love it so much. In fact, why not invent a special safety door that won't hit you in the butt on the way out, because you are fired. - Cave Johnson

                Comment


                  #9
                  Originally posted by gingerjedi View Post
                  And a posh shed.


                  eco-shed

                  Comment

                  Working...
                  X