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02-11-2017, 07:24 PM
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UK interest rates rise for first time in 10 years

http://www.bbc.co.uk/news/business-41846330

For the first time in more than 10 years, the Bank of England has raised interest rates.

The official bank rate has been lifted from 0.25% to 0.5%, the first increase since July 2007.

It is likely to rise twice more over the next three years, according to Bank of England governor Mark Carney.
This is currently big news at the moment but I can't see why .....

For the personal borrower/saver the changes are minimal - another £12 on the average mortgage monthly repayment, another £30 per year on a £10,000 Cash ISA .....

It's a welcome start of possible trend upward but, until any increase is in whole numbers, I can't see what the fuss is about .....
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02-11-2017, 07:47 PM
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Re: UK interest rates rise for first time in 10 years

I don't know why it is big news either, in 1979 when I was trying to buy a house interest rates hit 17%, that was news.
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02-11-2017, 08:01 PM
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Re: UK interest rates rise for first time in 10 years

Originally Posted by Meg ->
I don't know why it is big news either, in 1979 when I was trying to buy a house interest rates hit 17%, that was news.
It certainly was .....
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02-11-2017, 09:00 PM
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Re: UK interest rates rise for first time in 10 years

Compared to 1992 it's small fry.

Anyone remember that day when Lamont raised rates from 10% to 12% .. and on the same day panicked and stuck another 3% on in the afternoon of the same day.
I had a hefty loan then and was going blue in the face and breathing into brown paper bags.
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02-11-2017, 09:07 PM
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Re: UK interest rates rise for first time in 10 years

Yes it’s small fry for us, but for 30yos it’s a bit of a shock to the system, esp if they are living beyond their means
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02-11-2017, 11:55 PM
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Re: UK interest rates rise for first time in 10 years

Originally Posted by Missy ->
Yes it’s small fry for us, but for 30yos it’s a bit of a shock to the system, esp if they are living beyond their means
They'll have to take the kids out of private school, sell one of the BMWs, cancel that month in the West Indies and defer that third extension for a year (or more), then .....
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03-11-2017, 10:55 AM
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Re: UK interest rates rise for first time in 10 years

The trouble is with house prices as they are just a tiny increase is going to upset a lot of people's budgets. I was chatting to someone outside school gates she's been a homeowner for 8 years and never seen a rise, it's all been rates going down, the shock on her face was real enough, she's struggled this year to pay school fees I can predict if the mortgage goes up that will be a child doesn't come back after Christmas.

Some have huge mortgages we can only dream about.
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03-11-2017, 11:22 AM
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Re: UK interest rates rise for first time in 10 years

Originally Posted by Julie1962 ->
The trouble is with house prices as they are just a tiny increase is going to upset a lot of people's budgets. I was chatting to someone outside school gates she's been a homeowner for 8 years and never seen a rise, it's all been rates going down, the shock on her face was real enough, she's struggled this year to pay school fees I can predict if the mortgage goes up that will be a child doesn't come back after Christmas.

Some have huge mortgages we can only dream about.
On a £300,000 mortgage, currently costing £1,350 per month, the increase will be about £39 .....
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03-11-2017, 11:24 AM
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Re: UK interest rates rise for first time in 10 years

But that makes a difference as so many are living hand to mouth if you take ten pound a week away it can be start of their house of cards collapsing. And it that today what will it be next time ? Once it starts going up it will continue IMO
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03-11-2017, 11:39 AM
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Re: UK interest rates rise for first time in 10 years

Originally Posted by Julie1962 ->
But that makes a difference as so many are living hand to mouth if you take ten pound a week away it can be start of their house of cards collapsing. And it that today what will it be next time ? Once it starts going up it will continue IMO
Consumers are already losing far more than £10 a week in reduced packet and content sizes plus increased prices for food:

https://www.theguardian.com/business...tells-shoppers

For all those shoppers who feel chocolate bars, cartons of drink, toilet rolls and countless other products have been getting smaller, now comes official confirmation. A grand total of 2,529 products tracked by the Office for National Statistics have decreased in size over the past five years.

In an analysis of the phenomenon known as “shrinkflation”, the ONS explored whether these dwindling portions are making life more expensive. The theory goes: if a chocolate bar gets smaller but the price stays the same, that is a form of inflation because you are paying more for each bite.

The issue has regularly made headlines over the last year following the decline in the value of the pound after the Brexit vote. Food manufacturers have blamed the slump in sterling for increasing the price of imported ingredients and looked for ways to recover their extra costs.
https://www.thesun.co.uk/living/2901...ce-stays-same/

Compare these increases to the 0.25 percent:
A pack of Taste the Difference pork sausages until late last year had 20 sausages in a pack, weighing 625g, and cost £2.63.

This year, there are just 16 in a pack, weighing 500g, but the price has gone up to £3. That’s the equivalent of a 43 per cent increase in price.

Nearly all the packets of frozen chips in Iceland supermarket, including the steak cut, and straight cut, have been shrunk from 1.5kg to 1.25kg, but the price has stayed the same at £1 -- the equivalent of a 20 per cent jump in price.

In Asda, its Butcher’s Selection turkey mini fillets have shrunk from 573g for £3.50 at the end of last year to 500g.

But the price has in fact gone up to £4.50, the equivalent of a whacking price rise of 47.3 per cent.
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