Hi …
Does anybody think that the BOE will be lowering interest rates any time soon? From what I know, the last rates did not affect mortgage rates, but does anybody think any cuts may be made that may affect mortgage rates any time?
The BoE is only responsible for inflation. Not the economy!
Inflation is high, therefore interest rates have to stay high.
Thanks Gordon for your 10 years mismanaging the economy by building on a sea of debt!
The BoE is only responsible for inflation. Not the economy!
Inflation is high, therefore interest rates have to stay high.
Thanks Gordon for your 10 years mismanaging the economy by building on a sea of debt!
References :
Probably…. Mervin King has said that they will keep it at 5% for the foreseeable future, however the bank of england committee of 8 people have recently voted 3 to drop rates, 4 to keep the same and one of them wanted to raise it.
I think it will keep steady and will only come down if they think people need more money in their pockets to fuel the economy. With fuel prices due to reduce slightly (depending on strength of dollar though) it’s unlikely they’ll drop it for fear of higher inflation. With fuel prices coming down and a strengthening dollar, it’s likely inflation will stay around the 4% level until early next year, but the BOE will not then lower rates until interest drops to 3% or lower.
However, they are likely to change their minds if it is shown we have negative GDP growth, which is the kick start of a recession and lack of spending… but they won’t do this until inflation falls.
Any cut should impact on mortgage rates if you are on a variable mortgage. It’s the lack of credit in the market which is affecting available mortgage products as it’s supply and demand. They’ve got little supply and high demand so it makes sense for them to keep prices high and cream the profit while they can. He who has money at this time can take advantage of those who don’t unfortunately.
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