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I thought the consensus among economists at the moment is that the only way is down given the recession and mass unemployment that's coming? Surely raising them would slow growth which is the last thing the Bank of England would want to do?
There has been a short term rise fueled by rising petrol prices (after they dropped during lockdown), food costs increasing and frantic PPE buying but there's currently speculation that the BoE might take us into negative territory...
Fox-
That is right yes. But in the medium to long term they will need to rise. The UK (and particularly because if its economic makeup) will need to work out how it moves out of a debt fuelled, cheap credit economy. The UK has so little resistance to further shock now, either centrally or distributed thorough its citizens.
There's currently no benefit for anyone to have savings and operate their lives with any level of prudence. And the govt will need people to do this in the long-term so that the burden on state is less severe than our current trajectory dictates.
I think taking a 2/3/5 year fixed is all the same really and would expect this to change in the following decade and for the 40-50 years after.
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This was the basis of my 'under what circumstances would they go up' comment
But as Andy says you can find yourself excluded from the best deals because of LTV changes due to price drops and whatnot.
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Howard
Interest rates have to go up in the medium-long term because the fiscal gap is very unlikely to be filled by productivity, which has been in decline since the 80s