Mortgage Rate Rises

Freakbro said:
March inflation figures released and it stays above 10% at 10.1% and core inflation hasn't moved at 6.2%

Interest rates won't be coming down any time soon.
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Added to which I think it is highly unrealistic to expect a return to 1.x% rates again. It looks to me like interest rates in the 3-4% bracket are here to stay, inflation should start to naturally fall as energy prices are no longer rising and even food rises seem to be slowing obviously the government and the bank will take credit for this even though nothing they have done has really had any impact.
 
Well these figures indicate a rise in base rate for sure.
Unfortunately. They may mean even more rises after. I personally expected a bigger drop.

Current mortgage fixes rates are probably worth jumping on and securing right now.
 
413x said:
Well these figures indicate a rise in base rate for sure.
Unfortunately. They may mean even more rises after. I personally expected a bigger drop.

Current mortgage fixes rates are probably worth jumping on and securing right now.
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Not necessarily, the bank may see trends for future inflation coming down as fuel requirements decrease. They may decide to hang fire this time.
 
Hagar said:
Not necessarily, the bank may see trends for future inflation coming down as fuel requirements decrease. They may decide to hang fire this time.
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This is entirely possible but extremely foolish the only way forward is a real shock nothing else will do.
High unemployment and lower wage demands are required, I do realise this is not good for a lot of people.
 
Uther said:
I think it's odds on there'll be another interest rate hike now, they were expecting inflation to drop into single figures.
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Watching sky news report on this they said the main driver is food prices which are volatile. They also said that the BoE don’t use food prices but rather core inflation and this time they will look at pay rise data to decide what to do. Core inflation is currently 6.2% the same as last month.
 
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Core inflation was 6.2% vs 6% forecast, its not a good sign. Inflation is entrenched in the economy and wage growth is outstripping core inflation. Rate rise is 100% priced in now and a terminal rate closer to 5%. People need to stop thinking rates will crater anytime soon, inflation is here to stay.
 
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200sols said:
Core inflation was 6.2% vs 6% forecast, its not a good sign. Inflation is entrenched in the economy and wage growth is outstripping core inflation. Rate rise is 100% priced in now and a terminal rate closer to 5%.
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They are suggesting about 5.7% for pay rise data so it’s not higher than the core inflation.
 
No surprise it's food causing the issues.

Dare I say it.. How much of this is down to brexit? :D

Food also hits the poorest households hardest. The real. Cost of living increase there is huge.
 
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delta0 said:
I had somehow got the Jan data. What you have is correct.

I think we will see another 0.25 on the base rate. Food price inflation is expected to fall so they have to be a little careful but that is probably why they don’t look at that data too much.
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With these figures I've gone from thinking the next rate rise might not happen, to wondering if it will hit 5pc
 
413x said:
No surprise it's food causing the issues.

Dare I say it.. How much of this is down to brexit? :D

Food also hits the poorest households hardest. The real. Cost of living increase there is huge.
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imports are fine it's the home grown stuff thats taking a beating ..half the green house growers have closed up shop or are waiting for the weather they can't afford to run them .and eggs a case of 360 has gone from £19 to 58 ..
meat prices are levelling out except chicken . a chicken supreme used to be £1.05 they are now £1.95-2.20
 
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