Bank of England Base rate & other news

[Martin@AS Financial]

Rates held at 5.25 with 6 votes. 3 dissenters voting for increase. (It was 5 for hold and 4 for increase last meeting).

Economic growth prediction reduced. BoE now predicting that the economy will not grow next year and dismissed any notion of lowering rates.

Tories are even more screwed then they already were.

Market seems to be predicting 5.25% until Q3 2024. Then lowering to 4.25% by end of 2026!

Full BOE report here:

https://www.bankofengland.co.uk/-/me...ember-2023.pdf

[Martin@AS Financial]

'Far too early' to talk about rate cuts -Bank of England's Bailey

Full report from Reuters:

https://www.reuters.com/markets/rate...ey-2023-11-20/

[b0redom]

I hope it's not too long before they start to reconsider. I've got ~ 50% equity in a B2L mortgage coming to and end, and I've been quoted up to.......... £24k IN FEES ALONE to remortgage. eekeek

[vetran]

I hope it's not too long before they start to reconsider. I've got ~ 50% equity in a B2L mortgage coming to and end, and I've been quoted up to.......... £24k IN FEES ALONE to remortgage. eekeek

Seems they are busy screwing people again - House insurance renewal they doubled the premium so I phoned them up and they asked the same questions about child minding as last year with the same answers and it seems now they can't find anyone willing to underwrite a child minder. So off to Direct line and it was £100 cheaper than my current one was last year. £400 saved

[Martin@AS Financial]

I hope it's not too long before they start to reconsider. I've got ~ 50% equity in a B2L mortgage coming to and end, and I've been quoted up to.......... £24k IN FEES ALONE to remortgage. eekeek

Some of the btl arrangement fees are eye watering as lenders are offering low rates but with a percentage of the loan arrangement fee.

When you look at the total cost of borrowing having front loaded the mortgage so significantly with a fee, it may be worth looking at a higher rate with a lower and clearly defined product fee.

My view is that we still have someway to go yet before inflation is at the government set target of 2% and this could be hampered by the situation in the middle east as well as Christmas spending as both have the potential to increase inflation.

[dsc]

I hope it's not too long before they start to reconsider. I've got ~ 50% equity in a B2L mortgage coming to and end, and I've been quoted up to.......... £24k IN FEES ALONE to remortgage. eekeek

Fock as for reconsidering, I doubt there'll be much room for dropping, considering it's the spending season and apparently pay on average is rising faster than inflation...

[JustKeepSwimming]

My view is that we still have someway to go yet before inflation is at the government set target of 2% and this could be hampered by the situation in the middle east as well as Christmas spending as both have the potential to increase inflation.

10% increase in NMW + Government pressure to cut taxes for election isn't going to help either.

The average savings and debt rates don't look particularly promising from a rates cut.

[JustKeepSwimming]

Fock as for reconsidering, I doubt there'll be much room for dropping, considering it's the spending season and apparently pay on average is rising faster than inflation...

Can someone explain to me whether a payrise below inflation is inflationary or not. I've seen numerous economist swear blind it is not, but I don't understand how it isn't.

[dsc]

Can someone explain to me whether a payrise below inflation is inflationary or not. I've seen numerous economist swear blind it is not, but I don't understand how it isn't.

Probably depends how close to inflation the payrise is, if we are talking 2% payrise and 8% inflation, I'd say it's not inflationary as any fairly reasonable person will see less spare cash in their wallet at the end of the month and will rein in the spending. But take a 7% pay rise and 8% inflation and I can see how some people would just ignore the 1% diff and spend as before especially around Xmas.

Also read that minimum wage is going up (not that I'm against, it's too low anyway), so I really don't see how things will magically fix itself over the next 2-3 years.

[JustKeepSwimming]

Also read that minimum wage is going up (not that I'm against, it's too low anyway), so I really don't see how things will magically fix itself over the next 2-3 years.

What's going to happen when low skilled work pays nearly as much as moderately skilled work? There are lot of moderately skilled workers on salaries around £25k, especially in lower COL areas.

24.6% increase in 2 years is crazy, most people have seen no where near that.