Bankernomics 2

[AtW]

New rates guidance after previous one was thrown out so quickly (good start in new job Mr C)



Source: Bank of England Inflation Report: as it happened - February 12, 2014 - Telegraph

So, that's 1.2% next year and 1.9% in 2016.

Pretty quick increase for a dove.

For some people this would mean DOUBLING of their mortgage payments.

[BrilloPad]

So in 2 years vase rates will quadrouple? How will anyone cope?

[AtW]

So in 2 years vase rates will quadrouple? How will anyone cope?

One day at a time ...

[doodab]

So in 2 years vase rates will quadrouple? How will anyone cope?

Well I for one will buy less flowers.

[AtW]

Well I for one will buy less flowers.

[Zero Liability]

New rates guidance after previous one was thrown out so quickly (good start in new job Mr C)



Source: Bank of England Inflation Report: as it happened - February 12, 2014 - Telegraph

So, that's 1.2% next year and 1.9% in 2016.

Pretty quick increase for a dove.

For some people this would mean DOUBLING of their mortgage payments.

Well it's arguable that banks have already priced this in with their mortgage offerings. Whether they have priced in far higher potential interest rates, and/or whether their assumptions about what the future will bring are correct, are different matters.

[AtW]

Well it's arguable that banks have already priced this in with their mortgage offerings. Whether they have priced in far higher potential interest rates, and/or whether their assumptions about what the future will bring are correct, are different matters.

Fixed mortgages are already coming up and now will do even more so.

Variable rates will start coming up soon and those who borrowed for 2% pa when rates were 0.5% pa will find it a tad more difficult to pay at 4-5% rate when BoE increases rates to 2% in a couple of years.

I am actually very suprised at how aggressive BoE increase schedule looks like - cheap marketing trick of using 1.9 rather than 2 is LOL.