Interest Rates Go Up 0.25%

Not yet...............25BP won't do it - but a spike up to 8% for 3 months and then drop it to 6% would.

The B of E has left interest rates too stable for too long and lost the Central Bankers ability to keep the credit cycle under control. They should create some volatility to wipe out the hedge funds
More than happy to see rates go up.

At last get to feel some benefit of my fixed rate mortgage! :wink:
pah! knowin my luck by the time my fixed rate runs out itll hoiked up to 15%! negative equity here we come! :(
We changed to a repayment last year and it has gone up nearly 80 quid since then. What a bunch of complete and utter w4nkers we have at the Bank of England. I kid you not I am seriously worried about losing my house and if that happens I swear I will fcuking kill someone.
and the gutting thing is that if you have any savings at all the rates on THOSE dont go up as quick do they! they're quick to take the money but not so when it comes to givin it back.
If the Bank is right and has acted in time, interest rates won't stay at these levels for long - they will come down again within 12 months.

If the Bank has got it wrong, rates will have to increase.

I note the City, although wrongfooted onn the timing of this increase, believes there will be, at least, one more increase!

If you think things are tough on 5.25%, you should look at the average rate over the past 20 years


With rising fuel costs, council tax, etc that will lead to higher wage demands I doubt this will be the only rise this year to keep inflation under control.
The real rate of inflation is far higher due to rises in council tax, the increases in house prices and the rises in charges for other services such as public transport. Private sector salaries rise to keep pace with these increases and fuel inflation. The public sector is stuffed because pay increases are linked to the lie that inflation is around 2% when in fact it is far higher, and public sector employees get stuffed from three directions - rise in interest rates, salaries that are shrinking in real terms and an increase in the cost of living.
From the FT:

Prices rose by an annual 6.8 per cent in December, lower than November’s 7.4 per cent and the first fall in annual growth since September 2005.

Monthly house price growth was stable at 0.6 per cent in December, up from 0.5 per cent in November. London still led the market but monthly house prices in the capital also slowed.

House prices rose in December - (but not as fast as the previous December) therefore it was house price inflation which fell.

Apparently the FT originally reported it as a house price fall but have now changed it to house price inflation.
Central banks around the world (including the BoE) can do what they like with interest rates but they've lost control of liquidity and credit apparently

"that central bankers have traditionally tried to control the economy by influencing the price of money – which is usually defined either as narrow money (what central bankers create) or broad money (what commercial banks create through lending, which can be heavily influenced by central banks.)

However, the structured credit and derivative revolution essentially leaves central bankers increasingly powerless to control liquidity – meaning that not only are they unable to prick the current credit bubble, but will be equally impotent to combat its future collapse"

FT Yesterday.

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