interest rates to raise!!

[carefree]

as there is no football to be played for a while, i thought id hit the subject of interest rates. the bank of england have announced that interest rate will raise to 5% nx year! they say that it wont push us back into a recession! but did we ever get out of the last one?.
i hate to think it, but i recon we are going to be in big trouble.

i feel this is just the start and interest rate will climb to a lot more then 5%. what do you think?

[Tommy Trophy]

Interest rates will certainly rise, but not sure they will get as high as 5% in next 12 months. Will mainly affect people on variable mortgages, who are making hay at present and current loans and fixed rate mortgages have not really been positively affected by low rates anyway.

Will impact small businesses, but they have found it difficult to raise money this year in any case, and 5% is probably manageable for most if lending rates went that high - they would rather get access to the money.

Interest rates may need to go up in order to curb inflation with the price of food and oil driving that beyond the government's own targets.

Exchange rate is another big factor as the weak pound will make exports easier, but we don't manufacture much these days to export.

I think we are in for an other tough year through 2011 before starting to recover through 2012. IF confidence can be restored. We ned the media to stop banging on about the coalition and making mischief. Lib dems are the minority party so have to comprimise their vioews at times to get things done. Constant sniping will eventually lead to a general election and the potential of another hung parliament which could stop a recovery in its tracks. THE END

[Admin]

I am actually supportive of the Coalition Government too. The more representation - in my eyes - the better. Any coalition government will have disagreement. For me, disagreement is a good thing, because it means that people are standing by their views and values.

I have just got my mortgage offer (thank God) and it is on a fixed rate for 3 years; I had better have been promoted within the next three years, for when I come to re-mortgage!

Merry Christmas everyone.

[Admin]

(what it will do though, is further alienate first-time buyers)

[Glasgow Rangers Champions]

well bugger me.... im on a tracker mortgage at present and my interest rate is .99% above the bank of england one... so if it goes up to 5% i gotta be honest and say thats gonna take quite a chunk of money of me a month... and not only that as a guy with a young family its gonna cause even more problems! so i for 1 am not looking forward to this at all but i will get by somehow, however i no im not the only 1 in this position and think if this does happen then the goverment will only put us back into a bigger pile of ****!!

Remeber VAT is going upto 20% in Jan and fuel is also set to rise again aswell.... so if you ask me the light at the end of the tunnel just got a damm lot darker!

[carefree]

we will all get hammered in the next year one way or another, its already started with me, bought 1,000 litres of heating oil 10 weeks ago cost £482. went to re order another 1,000 litres just before xmas, £858!!! approx 85p a litre, slightly more then 5% increase hahaha, one way or another we will get stuffed. the oil companys say this is due to the raise in the cost off a barrel to $88, funny that as during the oil wars a number of years ago, oil per barrel went up to $116, heating oil price? 61p per litre.