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View Full Version : UK Interest Rates to rise sixfold in two years



C. Flower
21-12-2010, 01:01 PM
http://www.telegraph.co.uk/finance/personalfinance/8212723/Interest-rates-will-have-to-rise-sixfold-in-two-years.html


Rising retail prices (inflation) in the UK will lead to a rapid rise of interest rates, leading to many more mortgage foreclosures.

This will be serious for people who bought in the North in recent years, during the price bubble, potentially adding 200 a month to a standard mortgage.

If interest rates rise in the North, and not the South, then there would be a shift of bank deposits (if there are any left) from the Republic to UK banks.

Roll on the money-free economy as this set-up is in terminal seizure.

LouiseHannon
22-12-2010, 09:27 PM
On this basis and based on the fact that most of our ROI banks will be nationalised, we should look at bartering and work towards a cash free society which we will be in approximately two years time any how :)

morticia
22-12-2010, 09:29 PM
I doubt they'll raise the interest rates, or if they do, they'll have to drop 'em again to stop people defaulting. Alternatively, they'll have to print more money to put in the banks.

Interesting experiment these islands are running here; is inflation or deflation a better way out?? Maybe neither and we all just have to accept we're banjaxed.

I'd also query people taking their money to UK bank accounts. High inflation will devalue the capital even as high interest rates are being paid. It depends a lot on how the exchange rates evolve, I suppose. If they become very unstable (likely), it may not be a good bet for anyone who hasn't got significant links to both jurisdictions.