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BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by blahblah »

Pasty wrote:
murf wrote:
Knulpuk wrote:Voting revealed as still split 6-3 with an acknowledgement that things are a lot more uncertain than they were with the Middle East, add to that Japan's woes and I would think they will not be moving rates for a while - I will stick with August as a best guess.
Inflation keeps shooting up though. Is it 4.4% now? Rare for it to be so far from the base rate although any rise could only push it up more!

Lets see what whatsisface says in the budget...
I thought Interest rates are raised to lower inflation!
If it is demand-led inflation ie too much money chasing the same amount of goods then this is believed to be the case as: 1, it makes money more expensive to borrow (and the Economic Gods think people look at Interest Rates before spending); and 2, people are more likely to save than spend with higher Interest Rates (the Economic Gods actually think a 0.25% rise in interest rates will make people save). Both of these are believed to reduce the amount of money chasing the same number of goods.

On the down-side it deters industry\businesses from borrowing so it can reduce the number of goods produced. If this mirrors the reduction of the amount of money chasing the goods then can inflation can be unaffected. It is worth noting that imports need to be considered, and the impact of the Interest Rate change on Exchange Rates. Higher Interest Rates will make investing\lending in Britain more attractive, so pushing the pound up, as more people want to buy them, to invest\lend here. This will make imports cheaper, and exports dearer........

However, the current inflation is probably still fuel-price driven, so increasing Interest Rates will mean pretty much zilch.

Incidentally Agriculture has gone through a mini-boom as foreign produce has become more expensive due to the fuel prices hitting shipping prices.

Personally I think 1 and 2, above are pants, as people's access to credit and their willingness to borrow\save are more relevant. The first is Bank-driven, and the second strongly related to their perception of their Job Security.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by sted »

It was good while it lasted.

My 5 year 0.4% above BOE is due for renewal. The bank has just offered me a whole plethora of deals. All fixed rates and trackers that work out between 5%-6%....bollocks to that.

Their standard variable rate is 2.5% and guaranteed not to ever go more than 2% above BOE...got to be the way to go I think.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by Knulpuk »

9 to nil in favour of remaining at 0.5% - they seem here to stay and they have all but ruled out any further cuts.

Not sure I remember interest rates ever being this stable for so long : unchanged for 3.5 years now.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by goldenballs »

Which banks have the lowest variable rates?

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by blahblah »

It varies :lol:

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by Knulpuk »

blahblah wrote:It varies :lol:
That's true! It depends on LTV, term etc these days - and offers move almost daily.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by stuboy »

I'm fearful Halifax about to increase their standad variable mortgages again.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by bluenosey »

stuboy wrote:I'm fearful Halifax about to increase their standad variable mortgages again.
That's scandalous :(
goldenballs wrote:Which banks have the lowest variable rates?
This is a useful site :- http://moneyfacts.co.uk/

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by Knulpuk »

So 4 years ago today rates moved to 0.5% - no change on the horizon.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by Surprised »

Knulpuk wrote:So 4 years ago today rates moved to 0.5% - no change on the horizon.

Little point in having low rates if banks refuse to lend and they don't like lending for such low returns.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by Groomyd »

Knulpuk wrote:So 4 years ago today rates moved to 0.5% - no change on the horizon.
One of the best moves i ever made was taking out a full term tracker around a year earlier

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by sleuth »

Groomyd wrote:
Knulpuk wrote:So 4 years ago today rates moved to 0.5% - no change on the horizon.
One of the best moves i ever made was taking out a full term tracker around a year earlier

One of the best moves i ever made was paying off my mortgage....................

Image

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by murf »

sleuth wrote:
Groomyd wrote:
Knulpuk wrote:So 4 years ago today rates moved to 0.5% - no change on the horizon.
One of the best moves i ever made was taking out a full term tracker around a year earlier

One of the best moves i ever made was paying off my mortgage....................
No point paying off your mortgage if you are on a nicely priced tracker!

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by sleuth »

murf wrote:
sleuth wrote:
Groomyd wrote:
Knulpuk wrote:So 4 years ago today rates moved to 0.5% - no change on the horizon.
One of the best moves i ever made was taking out a full term tracker around a year earlier

One of the best moves i ever made was paying off my mortgage....................
No point paying off your mortgage if you are on a nicely priced tracker!

Yeah you console yourself with that thought...

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by Knulpuk »

5 years later and suddenly nothing happens...

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by bluenosey »

Knulpuk wrote:5 years later and suddenly nothing happens...
Got a feeling they will go up a quarter of a percent later this year, with employment starting to climb.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by murf »

bluenosey wrote:
Knulpuk wrote:5 years later and suddenly nothing happens...
Got a feeling they will go up a quarter of a percent later this year, with employment starting to climb.
Nah, not while wage inflation is so far behind retail price inflation.

Might creep up next year but it won't be by much - I bet it will still be 1% or less at the end of 2015.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by blahblah »

The Banks' fixed rate mortgages are all going up (or they are dumping the cheaper ones) and savings' rates are going down.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by murf »

Hints it may start to creep up in 12 months time but only gradually to reach around 2% by 2017.

0.5% for ages has been great for me (selfishly) but that slow rise would be fine, especially for those of us with long memories of much bigger numbers.....

http://www.bbc.co.uk/news/business-26153122" onclick="window.open(this.href);return false;

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by WilBert »

Knulpuk wrote:5 years later and suddenly nothing happens...
5 and 1/2 years later and still just as suddenly nothing happens.
http://uk.reuters.com/article/2014/08/1 ... OV20140813" onclick="window.open(this.href);return false;

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by Knulpuk »

The Sonia futures curve is now showing a 25bps increase in Nov 2015 following on from today's inflation figures.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by murf »

Knulpuk wrote:The Sonia futures curve is now showing a 25bps increase in Nov 2015 following on from today's inflation figures.
Last week(?) when they fixed at 0.5% for another month the speculation was that it would still happen this year to minimise the impact on a May election. Waiting til next November would help too...

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by Knulpuk »

Latest MPC minutes show:

The committee did agree on one point; interest rates are “more likely than not” to rise in the next three years. Hardly definitive!

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by bluenosey »

My 4.49% fixed rate comes to end on 31/3/15 (yey :P ) and I'm trying to get a 1.99% flex/offset mortgage linked to the Coventry BS's SVR.

My thought being interest rates are going to go up much.

Of course a SVR isn't pegged to the BoE BBR. I reckon a 0.25% hike early 2016 but I can't see it going up much more than 0.25% a year. Too many people will be mortgaged up to the max.

Getting a mortgage is certainly not easy now. I only just qualified due to income multiples, despite having a low LTV and the only reason for that is because I had overpaid a bit over the last three years.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by Knulpuk »

Knulpuk wrote:The Sonia futures curve is now showing a 25bps increase in Nov 2015 following on from today's inflation figures.

Per the same curve 25bps increase is not fully priced in until November 2016 now.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by murf »

I won't have a mortgage (or a job!) soon so they will have my permission to shove the rates right up!!

With many humble thanks for the 6 and a half years of low rates and payments!

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by murf »

This thread has been flatlining for a while like interest rates.

Back up to 0.25% today.

THIRTEEN YEARS they have been stupidly low, under 1%.

The youth of today.... never had it so good.

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by blahblah »

Depends if they have bought properties expecting Interest Rates to stay that low for decades 🤣😂🤣😂

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by forestfan »

murf wrote: 16 Dec 2021, 16:49 The youth of today.... never had it so good.
Apart from with the astronomical house prices such interest rates have fuelled…

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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)

Post by bluenosey »

forestfan wrote: 16 Dec 2021, 16:57
murf wrote: 16 Dec 2021, 16:49 The youth of today.... never had it so good.
Apart from with the astronomical house prices such interest rates have fuelled…
The youngsters have it really tough when it comes to getting on the housing ladder. Today's hike is pretty minor, unless you haven't fixed and I'm guessing most have. Have to try and keep inflation in check. For how not to do it, check out Turkey.

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