Mervyn King warns against 'premature' interest rate rises

[Martin@AS Financial]

It will be interesting to see if this happens as from the 1st July, King will no longer be the Govenor of BOE.

Mervyn King warns against 'premature' interest rate rises | News | Mortgage Strategy

[suityou01]

It will be interesting to see if this happens as from the 1st July, King will no longer be the Govenor of BOE.

Mervyn King warns against 'premature' interest rate rises | News | Mortgage Strategy

Morning Morning have been predicting this. Interest rate rises mean a default.

Buckle up people.

[Ketchup]

I really hope the do raise them soon, I am convinced a correction in the gap between salary and house prices is due. I thought that this gap was going to be closed by rising inflation and stagnant house prices, but the governments meddling through homebuy has started another boom. I say get the correction over and done with, get through the chaos caused and get on with rebuilding the economy.

[suityou01]

I really hope the do raise them soon, I am convinced a correction in the gap between salary and house prices is due. I thought that this gap was going to be closed by rising inflation and stagnant house prices, but the governments meddling through homebuy has started another boom. I say get the correction over and done with, get through the chaos caused and get on with rebuilding the economy.

Short termist idiotic view imho.

The deficit is huge. Huger than huge. Interest rate hikes won't help with government borrowing.

[Old Hack]

Not going to happen, for the very reasons you're predicting. I reckon another 3 years of low interest rates.

[ZARDOZ]

God forbid interest rates be used for anything other than to prop up the housing market.

Interest rate hikes won't help with government borrowing.

But they do help sell Government Bonds. They only way to keep interest rates low while borrowing more is to increase the money supply i.e. print money.

[AtW]

But they do help sell Government Bonds.

Interest rate on Govt bonds is based on supply and demand.

BoE prints funny money to buy Govt bonds - this can keep interest on Govt bond low even if BoE itself sets interest at high level.

I expect to see more funny money with new Gov, with Lord Merv's warning it seems that rates might go up - they should really because a lot of people right now overextending themselves with current super low rates - rates need to go up NOW even if just a bit.

[shaunbhoy]

Interest rate on Govt bonds is based on supply and demand.

BoE prints funny money to buy Govt bonds - this can keep interest on Govt bond low even if BoE itself sets interest at high level.

I expect to see more funny money with new Gov, with Lord Merv's warning it seems that rates might go up - they should really because a lot of people right now overextending themselves with current super low rates - rates need to go up NOW even if just a bit.

You just keep your mitts off the rates. They are fine where they are.

[Ticktock]

You just keep your mitts off the rates. They are fine where they are.

Some of us manage to save money, rather than being up to our eyeballs in debt.

Hurry up inflation, force an interest rate rise, let a load of people lose their shirts from borrowing money they couldn't afford (again...) so I can pick up some cheap deals on their car / house.

[AtW]

Some of us manage to save money, rather than being up to our eyeballs in debt.

WHS

It was a mission to get 0.5% interest from a bank that lends to customers over 20% on credit cards