anybody heard the rumour about interest rates goin up 2% soon?

The MPC are all talk, they should have put rates up a long time ago to stop the crazy housing market. Problem is, they deliberately encouraged it to make the government look good. People felt rich, so they borrowed and borrowed and spent and spent, which made the economy look strong. Now, the pigeons are coming home to roost.

They will put them up, but not by anything like two per cent. Two many doves and friends of the government for that.

NB. the government have chosen the very lowest inflation meausure (fiddled), which is not representative, but they are failing by over 1% to meet that target. Eddie George admitted that they have followed a low interest rate policy.

In UK where inflation is now running at about the 3.5% mark, the UK.gov want the Bank of England to tighten up a bit and try to cut this back to the planned 2.5% level.

It is very likely therefore that the Bank of England will indeed increase the interest rate, but by how much is pretty well anyone's guess.

Don't hold your breath, but a lot of City analysts simply get it wrong and predict either no rise in the interest rate set by the BoE, or else a lowering of the rate. Wrong nearly all of the time.

The only people in the know as it were, are members of the Bank of England Monetary Committee [think that's what they're called]. This committee sits and agrees on an interest rate which is then set by the Bank. Anyone who has borrowed heavily is hit hard by any increase in the interest rate.

Rule One - never borrow more than you can reasonably afford to pay back. Interest rates will continue to rise and sometimes even dramatically.

Judging by my weekly shopping bill, inflation is on the up. Certainly the price of bread has risen and petrol too therefore interest rates are sure to follow.Don't know by how much though. If banks have removed their fixed interest rate deals I would say that was definitely a warning and not coincidence.

They may well do, but not in one jump.Even so if you can remember back to the 80's when inflation was hitting 14% and interest rates were sky high,a 2% rise now would be quite modest.Not having a mortgage it doesn't worry me too much, I will certainly earn more on my investments.I worry a bit about my kids though as they are all buying their homes.

i did no longer hear approximately that. could be it incredibly is completely a concept, no longer a regulation. I doubt the cupboard could approve this kind of regulation. whether they needed to cut back dependence on foreign places workers it does no longer be logical to direct it at long term citizens, who've the journey , particularly it may be decreasing the numbers of latest comers . in any different case what's the factor ...The UAE government perspectives long term citizens particularly ones with understanding as an investment interior the rustic's destiny no longer as a legal accountability. So it would not make experience from a govt. standpoint a minimum of.

I have head that in May the banks meet again to discuss Interest Rates and that they will go up - so fix your mortgage now before it increases if you can that is.

well I did not hear anything about that but I know that milk, gas, bread stuff like that is up. The coupons they have in the paper are not real deals..it's like by 2 boxes of whatever get 25cents off... that's nothing. I know this restaurant we used to go to is using smaller glasses and giving smaller pieces of bread but charging the same amount.

A quarter of a percent next month I think, no need to hike any quicker.

3.5 in May..

no