BoE's Carney says base rate rise is 'moving closer'

[TykeMerc]

You believe the "official" inflation rates? You've let that whole "official" attitude get to your brain cell, that or you're being especially dim.

[AtW]

You believe the "official" inflation rates? You've let that whole "official" attitude get to your brain cell, that or you're being especially dim.

In golden Gordon Brown years inflation was under control, in large part thanks to high interest rates, which in turn benefited savers. That was fine by me, apart from rampart house price inflation which was solely due to reckless lending (relaxing 3-4 annual wage lending criteria, liar loans etc).

6% savings rate was about covering inflation, though 40% tax rate needs to be factored into it and suddenly it's not so good, but still much better than tulip for rates offered right now.

[shaunbhoy]

In golden Gordon Brown years inflation was under control, in large part thanks to high interest rates, which in turn benefited savers. That was fine by me

Oh yeah, you may have missed the property gravy train by a country mile, but by feck did you (eventually) get a good deal on that sofa!!

[WordIsBond]

In golden Gordon Brown years inflation was under control

Yeah. He kept inflation under control with high taxes. But at least it was reasonably under control.

His years were indeed golden for those to whom he sold the gold, just before running up the deficit (in good years), which of course drove the gold price higher. And of course, the cupboard was bare when a crisis hit -- instead of running a surplus in good years so you have a reserve when needed, he ran a deficit.

Those were indeed golden years.

[Zero Liability]

The CPI, which excludes housing, has flatlined. Whether that means prices in general have, or for that matter monetary supply inflation (which can cause price inflation), is another topic entirely.

[AtW]

Oh yeah, you may have missed the property gravy train by a country mile, but by feck did you (eventually) get a good deal on that sofa!!

You want to buy a lightly used sofa?

No credit outstanding on it...

[Martin@AS Financial]

Got sent this article this morning - Apologies for the rough cut and paste job:


Bank of England governor Mark Carney has warned that the end of the year could see a sharp rise in the number of tedious conversations about mortgages.

With interest rates having remained stable and low since the financial crisis, tedious mortgage-based conversations have not been something most people have had to worry about.

Carney explained, “There are people out there today who have never been subjected to an hour-long tale about one couple’s tiresome hunt to find a reasonable capital repayment mortgage.”

“They seem to think that mortgage-free conversations have become the norm, and I’m warning today that this is not the case.”

“By the end of the year we could see soul-destroyingly boring conversations about massive financial products possibly doubling, and reaching a level four times what they are today by 2017/18.”

“People need to prepare for that, and if that means saving up a few humorous anecdotes of your own to counter-act the effects, then so be it.”

Mortgage conversation rates

Home-owner Tarquin Rufus-Smythe said he wasn’t sure he could handle the coming rise.
He told us, “I remember back in the nineties when mortgage conversations were ten times the rate that they are today. It was horrific.”

“You literally couldn’t buy a loaf of bread without someone explaining to you about their fruitless search for a two-year fixed-term rate that wasn’t at least a couple of digits above base rate.”

“It makes me weep just to think about it.”

“God help us all.”

[OwlHoot]

2015-07-21 Three Huge Reasons Why the Fed Cannot Let Rates Normalize

and where the Fed goes (or doesn't), we in the UK pretty much follow (or don't), like a tug boat hitched to an aircraft carrier

[DimPrawn]

I've doubled my monthly income by loading up everything on interest free credit cards and then spending all the money as normal. It's frickin great I get to spend my money twice.

Let the stupid savers pick up the cost of all this loverly interest free, freshly printed moolah!

Spend, spend, spend!

0% Balance Transfer Fee - Credit Cards - Tesco Bank

[Martin@AS Financial]

Inflation fears led MPC to hold base rate:

Inflation fears led MPC to hold base rate | News | Mortgage Strategy