Interest Rate Rise,Will It Ever Happen?

Just been listening to the news and evidently the Bank of England looks like they are going to put up interest rates later on this year

It is about time as savers have been stung with low interest rates for far to long whereas all the youngsters have had the benefit of low rates so have been going mad (especially in our village)buying up all the large 5/6 bed houses that they can't really afford,sports cars plus all the latest gadgets so a rise in interest rates might slow them down a bit although at the moment they reckon it won't add that much to their repayments.

What do you all think,will it be a good or bad move for the economy?

 

Nice for savers but not for the borrowers, but will it happern as it as been said before that interest rate may rise and it never did
I hope it does, for me anyway

 

Morning @Kandy, this is going to be an interesting thread .
It's enevitable that rates will have to rise, but I think personally it's going to have to be very slow, there's too many people living on the 'edge'.
Whilst I like you would welcome a rise in interest rates, I think for many it would lead to houses/cars etc being repossessed which in turn will cause more problems.
I cannot believe that the banks are lending 95% mortgages again to first time buyers, it's madness in my opinion, but having said that who's to blame the bank or the person borrowing the money?

 

I think I might have heard the same report, and I find it mind-boggling. Calamity, calamity, if the rate goes up 1 or 2 percent. I'm sorry, savers have been struggling for years, as their income fell away to nothing, and they had to spend their capital.
How can anyone have planned for the interest rates to stay this low, when taking out a loan? We know that around 6-8% is much more normal. So yes, if a short term loan, you can hope it stays low, but a 5 year (car?) or 25 year (house) loan? You have to plan for a large potential rise, or go for fixed rates...


I probably need to state that the only loan I have ever had is a mortgage. Everything else, I have saved, then bought outright. Boy, I feel old, all of a sudden! I sound like my grandmother, bless her!

 

Yes me too @Sian in Belgium,I've only ever had mortgages too with the exception of one car loan, which id been advised to get by my accountant for tax purposes after the first month I payed the whole lot off, I couldn't see the point in having a loan when I'd saved for the car & had the money, yes I'd have saved a bit of tax but not enough to make a vast diference it wasn't a new car nor was it all that expensive.
My grandad & dear Uncle Tom drummed into me not to have a loan, credit Card or overdraft! Of course now I'm a big girl & can make my own decissions , I have an overdraft facility which I've never needed to use thus far & a credit card for use on line but that gets cleared every month.
Thank goodness there's still people like us around who save....when I talk to my younger colleagues at work my mind boggles they all have car loans, credit cards & catalogue balances....

 

The BoE keep warning of future rises in interest rates, but nothing ever happens, I suspect they're just trying to frighten borrowers into not overcommitting themselves and start preparing for increased borrowing costs, but as they never follow through with an increase borrowers may well think the BoE are crying wolf again, but one day all those borrowers who think interest rates will never, ever increase again because so many have never planned for an increase will get caught out. They are living on borrowed time!

 

Interest rates have been 0.5% since March 2009, so there have been 75 Monetary Policy Committee meetings since then, at which they've done nothing other than sit on their hands, think up excuses not to do anything & issue 'Forward Guidance' that's supposed to be long term but changes within weeks, at cost to the UK taxpayers approx. £10 million in salaries (plus on costs), so it's hypocritical when they criticise the productivity of the rest the UK workforce.

 

I fail to see how the financial markets manage to operate with interest rates so low, for so long.

I'm probably not intelligent enough to understand, but I thought the system needed both investors and borrowers.
For years now it seems its been weighted firmly in the hands of the borrowers, which tends to make me think that is why the whole world appears to be stuck in the doldrums.

Surely a sensible interest rate, one which is fair to both sides must be the aim, but that doesn't seem to be happening.
The government keeps banging on about getting the borrowing down, but at the same time bolstering borrowing for the individual.

I'll go back to chopping up wood now, at least that makes sense.

 

Been burning pallets to keep warm for years.

 

I totally agree with Beckie here there's too many people struggling to make ends meat...Only 1 member from the monetary policy committee voted for a rate rise so i think it well be in the spring before we see the first interest rate rise..when rates do start to rise it will be a slow process to get to what rates should be