will BoE put interest rates UP again?

Question

or will the Mr. G. Brown have them on hold to keep the US happy for the time being????

Answer 1

Yes they almost went up last month, bearing in mind that the B of E is independent of the government, Gordon will want to get the economy under control while the terrorist scare is still in the news.

Good news for debt advisors.

Answer 2

As the BofE is 'independent' and the decisions are made by the committee it would be very difficult for the government of the day to exercise control even overtly.

One thing GB has done right.

No government wants to see rates rising it makes them unpopular and as 4 rate increases have happened in the last 12 months I think that demonstrates a level of 'independence' I am sure they are aware of the governments views.

As to the direct question Yes. I expressed my view several months ago that I thought rates would reach 6% before they peak. I still think that is the case. Until the fixed rate lending deals of 2/3 years ago end and everyone has had their 'disposable' income reduced significantly to curtail spending then rates will remain high.

The magic trick to pull off is not to damage the retail sector too much and force unemployment too high. Unemployment is already rising in all age groups and this could lead to resentment if allowed to rise much above the 1.5 million currently looking for work (about 1 million registered and claiming)

Answer 3

Almost certainly. At the last meeting the vote was fairly evenly divided. If one person who voted against changes their mind then rates will go up.

The people who voted for an increase last time seem convinced of the need for a further increase. Nothing has appreared in the official figures that is likely to make them change their mind. So we are looking at the likelihood of one of the dissenters switching their vote.

House prices are still rising generally. Consumer spending does not seem to be slowing although seasonal variations always lead to interesting debates on what the figures actually mean.

I think it is a strong possiblilty that the rate will go up at the next meeting and, unless the figures change significantly, a dead certainty they will be higher by the Autumn.

Answer 4

The simple answer is yes. The so called economic stability has been brought about by ridiculously low interest rates which has lulled the public into a false sense of financial security (and thus borrow and spend beyond their means). At the same time the tax burden has hugely increased to the average household (somewhat masked by low interest rates).

As I saw through Messrs Robber Brown and Billy Liars stratagem years ago, I expect interest rates to rise to 7.5 - 8% before 2010.

Answer 5

This I do not know ; nor any apart from the boss at BoE.What I know at banking as a citizen self educated at humanity is that the behavior of the citizens makes interests go up and down.Agree?

Answer 6

I am absolutyely convinced that they will, expecially bearing in mind that many leading economists believe an 8% rate is needed to cool the housing boom.

Answer 7

no they are going up again and will do untill the pips squeak

Answer 8

GOING UP