2015 interest rate rise
2015 interest rate rise, are we there yet! Will 2015 signal an interest rate rise or is the potential rise a distant thought. It’s interesting since the financial crisis that happened in 2008 we have all though rate have to increase at some point. Here we are in 2015 7 years later and there has still not been any movement in the bank of england base rate.
It’s interesting because there has been many time in the last few years where the topic of an interest rate rise has reared it’s head and nothing has then come from it.
Recently the Bank of England governor Mark Carney has given his strongest indication yet that he wants to increase interest rates. Is this going to signal an imminent rise or could we be looking at next year before there is any realistic rise in the BOE rate. I believe Mark Carney would raise the banks interest rate now if the figures supported it. Looking at inflation and other figures which indicate how the economy is doing I believe we are still some way from a rate rise.
Looking into my crystal ball I would suggest that the ealiest we could expect a rate rise would be early next year, however, thats not to say a rise in interest rate might not be soon or even later.
Certainly, I bleieve that Mark Carney Wants to be the one to increase interest rates. There will become a time where an interest rate rise makes sens but i’m not sure if we are currently at that point.
Any rise though a significant milestone would not have a devastating impact on mortgage interest rate. I think if the BOE did increase rate we would only be looking at a nominal increase of 0.25%. Any increase it not welcome news for mortgage customers but also should put their mind at ease that it wont break the bank.
The obiouse impact of a rate rise could mean that many of us can no longer afford our mortgages, however I belive witht he small incremental rate rises we’re expect this should not happen. The economy is not in such a fragile state as it was in 2008 / 09 but the BOA are still concious that any dramatic increase could push borrowers over the edge.