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Interest rates rising?


Guest Peter James

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Guest Peter James

RBS, Santander, Nationwide, Clydesdale, and Yorkshire Building Society have all raised their 5 year mortgage rates this week, and Tesco did last week

I think the Government and their overpaid puppet Carney have made it clear they will never raise rates of their own volition. They have borrowed too much themselves, and seem addicted to rising house prices whatever its effect on housing benefit claims.

But how much longer can they keep interest rates down?

What if the USA raises their rates?

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peter - 2014-02-08 2:54 PM

 

Good for you! What about savers?.

 

What about savers ?

I chose to put my money in property rather than save , what about falling house prices for the last 4/5 years are you asking about money lost through that for property owners also ?

Playing with money is a gamble , sometimes you win , sometimes you lose

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I do not think we will see BoE or the Fed rate alter much until all parties stop QE.

 

s interest rates are so low, to use interest rates alone to control the money supply would mean negative interest rates - and as 0.5% BoE base rate is barely positive and leaves no room for manoeuvre they print money to bolster the economy.

 

Highly dangerous in the long term but in the short term what else can they do?

 

But it does mean inflation as you £ buys less - you may have more in your pocket because they have printed more - but it also means that interest rates by necessity will remain low whilst they keep doing it.

 

Only when they stop QE will interest rates start to rise again.

 

Trouble is - the nearest hint of their stopping QE causes market jitters.

 

http://www.reuters.com/article/2014/01/29/us-markets-stocks-idUSBREA080LL20140129

 

The US is trying to stop QE and because of its relatively strong position (primarily due to the US economy having a huge boost due to cheap energy via Shale Gas & Oil) it will achieve this well before we do - but as the Eurozone is in such a mess it is unlikely we will be able to contemplate the same for a considerable time.

 

 

 

 

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antony1969 - 2014-02-08 3:03 PM

 

peter - 2014-02-08 2:54 PM

 

Good for you! What about savers?.

 

What about savers ?

I chose to put my money in property rather than save , what about falling house prices for the last 4/5 years are you asking about money lost through that for property owners also ?

Playing with money is a gamble , sometimes you win , sometimes you lose

I'm glad I didn't put mine in property. I don't need the hassle. As it is we've made over 25% return on our capital over 4 Yrs tax free, without the worry of some tenant trashing the property we might have bought. What's your net yield Anthony?. I'm not complaining about the low interest rate for myself, as my money is invested in a lot of bonds, which fare better when interest rates are low. But not everybody can do what we've done and re-invest the interest but live off the interest on their savings. But some people have only self interest.
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peter - 2014-02-08 3:19 PM

 

antony1969 - 2014-02-08 3:03 PM

 

peter - 2014-02-08 2:54 PM

 

Good for you! What about savers?.

 

What about savers ?

I chose to put my money in property rather than save , what about falling house prices for the last 4/5 years are you asking about money lost through that for property owners also ?

Playing with money is a gamble , sometimes you win , sometimes you lose

I'm glad I didn't put mine in property. I don't need the hassle. As it is we've made over 25% return on our capital over 4 Yrs tax free, without the worry of some tenant trashing the property we might have bought. What's your net yield Anthony?. I'm not complaining about the low interest rate for myself, as my money is invested in a lot of bonds, which fare better when interest rates are low. But not everybody can do what we've done and re-invest the interest but live off the interest on their savings. But some people have only self interest.

 

I totally have self interest Peter . Call me what you like but I care only for me and mine .

With respect Peter my old man taught me never disclose high or low what you earn/make other than to a half decent accountant who follows your instructions .

Be happy with your investment and return , sounds fairly reasonable to me .

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