Interest rate hike ??

[User removed 4]

CPI and RPI through the roof today, what do you reckon the chances of a rate rise are ?

UK inflation jumps to 17-month high - Telegraph

 

[Gritt23]

Low. Can't afford to take more disposable income out of peoples pockets.

 

[Hatterlovesbrighton]

Low. Can't see them going up this year.

 

[User removed 4]

Low. Can't afford to take more disposable income out of peoples pockets.

but the ' old lady's ' mandate is to control inflation.

 

[fairy cakes]

Is inflation not the best way to get out of debt?

 

[Robbie G]

From the May Inflation Report. Suggests that there won't be any increases.

 

[wellquickwoody]

Low. Can't afford to take more disposable income out of peoples pockets.

But some people are £500-£700 a month better off since interest rates went to this historical low. That is all disposable income.

 

[Bigtomfu]

First rate rise expected Q1 2011, with headline rate to reach 2.5% by end of 2011 would be my expectation.

 

[Mellor 3 Ward 4]

A lot of this is down to two things

Fuel and VAT (back to 17.5%)

VAT is now stable (until next April when it will be 20% adding about .7% to RPI) and Crude prices are falling.

IMO Interest rates will stay at or arong current levels for at leastthe next 12 months.

 

[Superphil]

when does VAT go up?

 

[beorhthelm]

Low. Can't afford to take more disposable income out of peoples pockets.

but thats not the criteria used to decide changes of interest rate, and in the long term with earnings not rising inflation will reduce disposable income anyway.

not that i think they will rise for a while.

 

[The Large One]

when does VAT go up?

When it's announced.

 

[public school boy]

Now it's time to pay for 13 years of mismanagement.

 

[Tricky Dicky]

From the May Inflation Report. Suggests that there won't be any increases.

I think you'll find that's a satellite picture of the oil slick in the Mexican Gulf.

 

[cuthbert]

Low interest rates are not quite so good for savers. It certainly rduces my income.

 

[Deleted User X18H]

Low interest rates are not quite so good for savers. It certainly rduces my income.

Ours too!

 

[pork pie]

I'm not sure that raising the base rate will make any difference to most people or even businesses. Banks have been charging much higher rates to people anyway and pocketing the difference. The BoE should increase rates to protect the £.

 

[Napper]

Double dip recession anyone ?

 

[Uncle Spielberg]

Interest rates could be 0.5% until the end of 2011 now. There is no chance of them going up this year. The problem now is that people are used to paying unrealistically low rates on their mortgages and even commentators are talking as if interest rates rising from 0.5% is bad and 2% would be high ?!. Considering the Bank of England base rate has averaged nearly 9% over the last 20 years I am worried that people think paying nothing on their mortgage is normal and will be in for a shock when they finally go up.

 

[Uncle Spielberg]

Interest rates this low is an indicator of a dead economy and a dead country so long term are not good and send out a bad message. Also it is crippling for savers and people on a pension income.

In an low inflation environment of 2-3% the interest rates should be around 4-5%.