Interest rates going up?

Discussion in 'Finance, Property, Law' started by Forces_Sweetheart, Nov 8, 2006.

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  1. I have bet on a quarter point increase on the base rate to be announced tomorrow....
  2. I think your right, and I'm just hoping that they don't try any more remedial action and go for a half point, though most people see that as unlikely but not impossible.

  3. Oneshot, Agree 50 basis points unlikely but when do the BoE start worrying about overvalued housing creating macro-economic stability?
  4. Yup, inflation and wages concerns are mounting and they will want to pre-empt any Christmas debt without killing off consumer spending - tricky.
  5. Probably the right thing to do it now. Prediction by some economists that next year will see it flatten and drop again. The BofE hasn't fluffed it yet since it was deshackled.
  6. This may come in handy if you need to re-calculate your monthly mortgage payments.....

    Attached Files:

  7. Cost more in the long run but does this mean that my pension will be increased by more when I get it at 55?
  8. Not mine... you're talking gobelejewk. But hold on to your hats, it's been a long time coming but when it does (fully) there will be a lot of repossesions.
  9. Non comprende - maybe a quote would have helped to show who/what you are responding to?
  10. Hagar,

    Your pension is linked to the RPI - not base rates. The connection is that if the RPI increases, the BoE will raise interest rates, and vice versa.

    It is important to note that your pension is linked to the RPI and not the CPI. The RPI has been calculated for many years now. The CPI was dreamt up by this Chancellor to exclude all those goods and services he wanted to tax. The BBC has duly fallen in line with the pressure and only quotes the CPI. The RPI is currently running at a much higher rate than the CPI.

    RPI = Retail Price Index
    CPI = Consumer Price Index
    BBC = Brown's Broadcasting Corporation