Rosy economic times ahead!

Interest rates could hit 8%, says economist

Interest rates could rise to 8% by 2012 if inflation gets out of control, a think tank has warned.

Andrew Lilico, chief economist at the Policy Exchange, says the Bank of England may be forced to dramatically hike the base rate if inflation rises dramatically (see the The Remortgage Guide and Top Savings guides).

Dr Lilico thinks the UK is likely to suffer from a double dip recession, followed by a boom, driven by huge monetary growth, leading to the strongest economic growth since the 1980s.

http://www.moneysavingexpert.com/news/mortgages/2010/08/interest-rates-could-hit-8-says-economist

Thank god I saw sense and fobbed off the tracker mortgage i was offered.

I'm busier in the last 4 months than I have been for the last 3 years, pretty rosy for me!

I have an investment linked to the BOE base rate so i've been very ****ed off for some time. 2-3% above inflation will do me.

I have an investment linked to the BOE base rate so i've been very ****ed off for some time. 2-3% above inflation will do me.

that's the problem though. The CPI is a complete fantasy, the RPI is a little better but I've been keeping a spreadsheet of all my spending for the last 3 years and my blended average inflation rate is 5.8% which I would imagine is similar for most middle and working class people. And what with wages not increasing anywhere near that rate (wages haven't risen faster than inflation for almost 15 years now) there is real concern going forward. The single only thing keeping the economy's nose above water at the moment is that mortgage rates are at the lowest ever. Monthly repayments are also at the lowest ever and still the economy is struggling.

How does a boom and bust economy equal rosy economic times?

How does a boom and bust economy equal rosy economic times?

Who is to say there will be another bust once we've recovered from the mess the Socialists left?

Who is to say there will be another bust once we've recovered from the mess the Socialists left?

True, yet how many times do you need to be told that New Labour weren't Socialists?

Who is to say there will be another bust once we've recovered from the mess the Socialists left?

I don't need to assume you have a short memory, Dune. It's quite obvious. Otherwise, you're just not old enough. Conservative Party politics either result in the seriously rich getting richer, at the expense of everybody else [which includes you and the rest of us, btw] or the trickle down economy results in a bit of a boom for everybody until everywhere is satisfied, in very short time, and then we go into another downturn. Another btw, the poorest of the population, benefit for the shortest time, if at all. Then we [the electing populas] get a crisis of conscience and the Labour Party gets re-elected to try to heal the misery the Conservatives have inflicted upon the unlucky and unfortunate [as well as the workshy, who they were aiming at], but it's often a generation too late, and we have another set of underclass who the rest have to support.

The article is a bit of a doomsday scenario. I can see the interest rates going up to 5% in 2 years time but i can't see the economy surviving hikes as high as 8% in 24months or so.

It would cause a meltdown in the business and housing market.None of us can afford that Dune.

The economy is on a knife edge and only low rates are keeping many businesses going. If the rates rise too quickly then it will be carnage and your investments will hit a wall as well.

A steady and cautious approach is needed and the printing of money has stopped now (a massive gamble by brown that i was against) and i hope that the BoE can steer us through, especially as I'm about to get a large mortgage for the first time in 20years!!

The article is a bit of a doomsday scenario. I can see the interest rates going up to 5% in 2 years time but i can't see the economy surviving hikes as high as 8% in 24months or so.

It would cause a meltdown in the business and housing market.None of us can afford that Dune.

The economy is on a knife edge and only low rates are keeping many businesses going. If the rates rise too quickly then it will be carnage and your investments will hit a wall as well.

A steady and cautious approach is needed and the printing of money has stopped now (a massive gamble by brown that i was against) and i hope that the BoE can steer us through, especially as I'm about to get a large mortgage for the first time in 20years!!

Two words Nick - Fixed Rate.

Two words Nick - Fixed Rate.

yep but you come out of that sooner or later and then it can be quite a shock. I wanted to do a 5 yr fixed but couldn't get what i wanted with the lender. Settled for 2year.

http://www.bbc.co.uk/news/business-11079496

that's the trouble with figures, nobody ever agrees with them.

If the measures mean that some of the people on benefit go and get jobs surely that is a good thing?

I suspect we all know of people who have packed in jobs or turned them down as they are better off on benefits.

I always mantain that the people who really deserve benefits should get them, in that I mean the helpless and frail. The youngsters i see kicking around, smoking their fags and brinking while the rest are at work, are more than able to get themselves to the shops and so should be able to go and work. Unless you make it difficult for them they will take and take, and they will be on our backs forever.

I would think any socialist would believe in every fit person making their own way in life and Yvette Cooper should back it

I also think benefits should only go to people who 'deserve' them, as you rightly say.

I do wonder, however, where all the jobs for 'shirkers' will come from, once the second downturn is under way.

I also think benefits should only go to people who 'deserve' them, as you rightly say.

 

I do wonder, however, where all the jobs for 'shirkers' will come from, once the second downturn is under way.

Oh come on BTF, you know full well that if we send all the eastern european immigrants home there are plenty of jobs fruit picking and washing cars that can be re-allocated to the workshy