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Interest rates up to 8pc in two years

Yes Interest rates up to 8% in two years

Experts are predicting a large rise Interest rates in the next two years. They expect the rise to reach around 8% to dampen the soaring inflation.

All research points to the Bank of England being forced to raise interest rates to cope with inflation.

Bank of England

Bank of England base rates

With ballooning inflation threatening to tip the economy back in to recession analyst are expecting the rise to start over the next few months. Given the constraints of late 2008 and the absurdities of subsequent fiscal, finance and regulatory policy, some are hoping they can get away with a recession of only 6%, deflation of only 2% and inflation of only 10% for one year.

A brief double dip recession early next year is likely, and would be quite compatible with a boom thereafter. That boom would quickly run out of control, as the £200bn of “money printing” by the Bank during the crisis would lead to “a huge expansion in the money supply, which will lead to inflation”.

posted by Zane in Lending,Mortgage,Recession and have Comment (1)

One Response to “Interest rates up to 8pc in two years”

  1. Absolute rubbish!

    At least you didn’t publish the name of these so called “experts”. This is the best bit of PR I’ve seen in a long time – they issue a press release with this scaremongering nonsense and EVERYONE is talking about it.

    Mervyn King (ex governor of the Bank of England) expects Base Rate to stay where it is (give or take 25 points) for the foreseeable future.

    I know who I’d choose to believe!

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