National News Interest rates

The challenge is the longer the inevitable increases are held back the more painful it might be.
I can see rates rising by 0.25% until they get to 2% then in bigger jumps.
Hopefully if action is taken quickly the pain will be less
 
The challenge is the longer the inevitable increases are held back the more painful it might be.
I can see rates rising by 0.25% until they get to 2% then in bigger jumps.
Hopefully if action is taken quickly the pain will be less

Raise them too high, too quickly and you will create a high risk of recession.

It’s a balancing act of course, but they have to creep up in a similar manner to how the dropped down, given how delicate the economy is at present.

The current pressures on inflation are also a knock on effect of supply and demand following worldwide lockdowns and supply chain issues etc. Hopefully that will settle down throughout 2022.

Wouldn’t be surprised to see interest rates around 0.75 - 1% by end 2022. 🤷🏼‍♂️
 
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It’s a balancing act of course, but they have to creep up in a similar manner to how the dropped down, given how delicate the
They didn't exactly 'creep down'.

UK base rates were cut from 5% to 4.5% in October 2008, after the global financial crisis took a lurch for the worse. They were then reduced to 3% in November 2008, 2% the following month and 1.5% in January 2009. They then dropped to 1% in February 2009 and to 0.5% in March 2009.12
 
They didn't exactly 'creep down'.

UK base rates were cut from 5% to 4.5% in October 2008, after the global financial crisis took a lurch for the worse. They were then reduced to 3% in November 2008, 2% the following month and 1.5% in January 2009. They then dropped to 1% in February 2009 and to 0.5% in March 2009.12

Ok, fair enough.

0.5% to 0.1% between 2009 and 2021 suggests that the reverse will be true.

Significant reductions during that financial crisis will not mean a significant and rapid uplift during this current financial crisis.
 
I hope your suggestions of 1% are accurate.
I can’t see interest rates staying too low because of the inflationary pressures caused by rising food prices and wages resulting from fuel shortages. Increasing labour rates for drivers won’t help as well as shortages for microchips.
This morning we hear coffee is rising because of coffee bean shortages.
I also wonder how long house prices will rise before a correction comes.
Interesting and very challenging times ahead
 
I hope your suggestions of 1% are accurate.
I can’t see interest rates staying too low because of the inflationary pressures caused by rising food prices and wages resulting from fuel shortages. Increasing labour rates for drivers won’t help as well as shortages for microchips.
This morning we hear coffee is rising because of coffee bean shortages.
I also wonder how long house prices will rise before a correction comes.
Interesting and very challenging times ahead
Me too but this has been asked now for the last 25 years and it hasn't happened. There isn't enough supply to meet the growing demand and particularly in our neck of the woods.

An interesting societal question over the next 20-30 years is what will happen to those who couldn't afford to buy a house as they enter old age? Their income will likely diminish as they either retire or ill health precludes them from working but unlike those of us lucky enough to own a property, they will still have increasing monthly rent costs to meet. As people live longer, this is going to become an increasingly prevalent issue. Improvements in medical care have a lot to answer for :)
 
Me too but this has been asked now for the last 25 years and it hasn't happened. There isn't enough supply to meet the growing demand and particularly in our neck of the woods.

An interesting societal question over the next 20-30 years is what will happen to those who couldn't afford to buy a house as they enter old age? Their income will likely diminish as they either retire or ill health precludes them from working but unlike those of us lucky enough to own a property, they will still have increasing monthly rent costs to meet. As people live longer, this is going to become an increasingly prevalent issue. Improvements in medical care have a lot to answer for :)
I can't see a house price crash, at least not in desirable areas. If prices fall significantly then people with some spare cash invested will snap them up to rent out.
 
Roadside pump fuel prices should be dropping by 6p as wholesale prices are dropping , wonder how long before ...if at all...consumers have the price reduction passed on to them?

 
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They will come down, but there will be a significant delay.

It's called profiteering [emoji6]

And they'll probably go up again in the new year.

Anyone unfortunate enough to have oil fired heating will know that petrol prices are remarkably stable in comparison.

Now that is a market with some rampant profiteering...
 
An old firm of mine used to be a supplier to Shell. I got to know their Head of Retail Forecourts well and remember him telling me that his entire operation and its associated profits were a rounding error compared to 'the boys who play the market on petrol futures and buy/sell accordingly' - that, he told me is where the petrol Cos made their money.
 
I also wonder how long house prices will rise before a correction comes.
Interesting and very challenging times ahead

In the greater scheme of things, any correction becomes a blip on the timeline.

Your B2L will hold up in terms of rents.

As for your own home, it is all relative.
 
Not so sure you’ll be happy with Shell now. Having said that I’ve got BP and they slumped 8% yesterday despite being cash rich

Usual knee jerk reaction in the markets.

If the news over the coming few weeks continues to raise serious concerns about this variant the markets will be all over the place.

I poised and ready to top up 🙂
 

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