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Interest Rate Hike
Posted: October 18th, 2021, 9:37 pm
by GeoffF100
"The futures market is now applying a probability of more than 90% to Bank rate rising to 0.25% at the MPC's next meeting on 4 November.
Bank rate is now expected to be 0.5% by the end of February next year and more than 1% by the end of 2022."https://news.sky.com/story/interest-rat ... n-12437550
Re: Interest Rate Hike
Posted: October 18th, 2021, 9:58 pm
by AsleepInYorkshire
Well there goes the Christmas turkey.
Purely a sportsman's bet but I'm betting against an interest rate rise.
AiY
Re: Interest Rate Hike
Posted: November 25th, 2021, 10:51 pm
by quelquod
Got your turkey yet?
Re: Interest Rate Hike
Posted: November 26th, 2021, 11:25 am
by ursaminortaur
quelquod wrote:Got your turkey yet?
As he said it is for Christmas not Thanksgiving (which isn't usually celebrated in Yorkshire) so its still a bit early yet.
Re: Interest Rate Hike
Posted: November 26th, 2021, 7:56 pm
by Nimrod103
Surely the new Covid variant means that a BoE interest rate rise is out of the question until the middle of next year?
Bailey wipes his brow with relief.
Re: Interest Rate Hike
Posted: November 26th, 2021, 9:53 pm
by BT63
What use are one or two interest rate increases anyway? A token gesture to try to pretend that the BOE are doing something.
Rates will still be below inflation even if inflation comes down to 2% target.
With 5-10yr gilts yielding only 0.6-0.8% it wouldn't take many rate rises to upset the bond markets, with consequences for government borrowing costs.
Re: Interest Rate Hike
Posted: December 16th, 2021, 12:15 pm
by murraypaul
https://www.bbc.co.uk/news/business-59682521Bank of England raises interest rates to 0.25%
The Bank of England has raised interest rates for the first time in more than three years, in response to calls to tackle surging inflation.
Re: Interest Rate Hike
Posted: December 16th, 2021, 12:17 pm
by pje16
0.15 %
That wil make a HUGE differnce no doubt
Re: Interest Rate Hike
Posted: December 16th, 2021, 4:07 pm
by AsleepInYorkshire
pje16 wrote:0.15 %
That will make a HUGE difference no doubt
I'm not an economist but I seriously doubt interest rate rises will have any consequence on rising costs.
AiY
Re: Interest Rate Hike
Posted: December 16th, 2021, 4:15 pm
by pje16
Thanks AiY
(can't see a thanks button on this post)
Re: Interest Rate Hike
Posted: December 16th, 2021, 6:17 pm
by tjh290633
Decimal point in the wrong place. It should have been 2.5% to get back to a sensible level. Maybe 5% after that. The GBP would react more to something like that. It should never have been so low.
TJH
Re: Interest Rate Hike
Posted: December 16th, 2021, 9:00 pm
by BT63
tjh290633 wrote:Decimal point in the wrong place. It should have been 2.5% to get back to a sensible level. Maybe 5% after that. The GBP would react more to something like that. It should never have been so low.
TJH
Yes, the BOE and other central banks allowed 'emergency' measures from 2008/9 to continue and now the economy and financial system is worryingly addicted to them.
Interest rates cannot be raised by any meaningful amount and central bank asset purchases cannot be stopped without causing a meltdown in bond markets and/or a meltdown in stock markets.
Central banks no longer have any good choices left; whatever they do will end badly and we are probably within a few months of the tipping point for the beginnings of runaway inflation and/or stock market bear and/or bond market bear and/or recession.
I think if we all look back in 3 - 5 years time, most of us, whatever assets we hold, will be saying how much worry and loss of sleep we suffered in the probable rollercoaster that's coming.