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Interest Rate Increase

Community Veteran
Posts: 18,893
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Registered: ‎12-08-2007

Interest Rate Increase

The Bank of England has increased interest rates to 0.75%

 

Rise in Interest Rates

 

It is the first rise in a decade and not unexpected.

 

9 REPLIES
Community Veteran
Posts: 5,894
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Registered: ‎23-09-2010

Re: Interest Rate Increase

Still far too low for me.

5% is more reasonable. A fair return for savers and still a low rate for borrowers.

The current low rate seems more about keeping the governments borrowing under control.

Community Veteran
Posts: 18,893
Thanks: 294
Registered: ‎12-08-2007

Re: Interest Rate Increase

But if savers got 5% the borrowing rate would have to be around 6%+.  This is not sustainable currently. 

 

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Community Veteran
Posts: 18,026
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Registered: ‎06-11-2007

Re: Interest Rate Increase

If you have "that much" money, that you are concerned about having 5% interest on it, then perhaps you would be better off going into the "property refurb" market.... where people often get more than 5% up to 10%+. making £10k+  from developing/refurbishing property over 6 to 8 weeks work...  Bearing in mind, these guys are paying others to do the work for them in most cases ! ! ! ..

Wish I had that kind of money... but too late in life , unless I win the lottery...  !

Community Veteran
Posts: 5,894
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Registered: ‎23-09-2010

Re: Interest Rate Increase

No I haven't that much, wish I had. I would just like a fair return for bankrolling every man and his dog.

It just seems at the moment everyone gets a good deal except the savers who are supplying the money.

Community Veteran
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Registered: ‎21-03-2011

Re: Interest Rate Increase

Correct me if I'm wrong, but broadly speaking if the Interest Rate goes up, the Government will will have to pay more to service the Government Debt pile?

Now Zen, but a +Net residue.
Jonpe
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Registered: ‎05-09-2016

Re: Interest Rate Increase


@artmo wrote:

 

 

Rise in Interest Rates

 

It is the first rise in a decade and not unexpected.

 


As the graph at the end of the BBC article shows, the BoE interest rate rose a year or two ago (from 0.25 to 0.5%), but it's the first time in nearly a decade that it has gone above 0.5%.

As long as inflation is higher than savings interest, our savings are losing value, yet the government complain that we are not saving as much as other nations.

Champnet
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Registered: ‎25-07-2007

Re: Interest Rate Increase

The graph should go back to the early 90’s when the rate was almost 15%.

If you had a mortgage there was not much chance of saving anything......

Jonpe
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Registered: ‎05-09-2016

Re: Interest Rate Increase

I remember getting 15% interest on a bog-standard building society savings account. 

Community Veteran
Posts: 5,894
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Registered: ‎23-09-2010

Re: Interest Rate Increase


@Champnet wrote:

early 90’s when the rate was almost 15%.

If you had a mortgage there was not much chance of saving anything......


I had a mortgage then. Funny thing though with the equally high interest on savings, even the small amount I had, the interest on that used to cover a good part of my mortgage.

The rates have swung over so far now that they benefit no one except the banks and the government.