Base rate rise!

AJUK · 11 Jan 2007 at 12:12

http://news.bbc.co.uk/1/hi/business/6251963.stm

Are we starting to see the BoE deciding that we need to tighten our belts?

AJUK · 11 Jan 2007 at 12:15

Visage said:
Cue crashuk: 'WE'RE ALL DOOMED'

LOL. One of the few certainties in life.

AJUK · 11 Jan 2007 at 12:38

lozza23_uk said:
damn. just found a place I like. struggling to find a mortgage as I have been self employed for about 1 month

oh well. looks like I am staying with the parents. 24 and living at home.
boo.

Stay there and save like mad. Seriously, that is the best thing for you to do at your age given the current situation. Then pick up something cheap when the recession bites hardest.

AJUK · 11 Jan 2007 at 12:53

The main reason is because inflation was starting to get a little out of control, house prices have certainly contributed to that.

AJUK · 11 Jan 2007 at 12:56

Visage said:
Not directly, IMO - its more down to people looking at the money they've accumulated in their home and feeling more secure in unsecured borroing to fund spending....

'10 grand on a credit card? No problem - my house has gone up by 50k.'

I agree, that's sort of what I mean.

AJUK · 11 Jan 2007 at 14:29

The problem with the savers' smugness is that they are often slow to make a rise and then the rise in rates is less than the base rate increase. ********!