Thoughts on the interest rate rise?

Good or bad for your business/the economy?

Didn't find your answer?

The Bank of England has voted to raise interest rates for the first time in more than a decade, with many predicting this will signal the start of a series of gradual increases.

Will this be a good thing for your business, your client's businesses and/or the economy in general?

All the best,

Tom

Replies (10)

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By Duggimon
02nd Nov 2017 12:15

It's a slightly different flavour to the spiralling pit of despair into which we find ourselves cast.

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PJ
By paulgrca.net
02nd Nov 2017 12:30

Tiny increase will make little difference.

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By User deleted
02nd Nov 2017 12:32

In the short term, it will possibly provide an improvement to the strength of the pound?
In the medium term, it will provide distraction from the knee trembling, which seems to persist in the House of Westminster. In the immediate term, it will provide a distraction from the "Brexit" debacle
In the long term, all will be well, in the House of Westminster and the status quo will be returned, where MP's play around with "the till" and, from the sound of it, each other!
You really couldn't make this 5h1t up, could you?

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By justsotax
02nd Nov 2017 13:27

i am sure everyone with a mortgage/loan/credit card will be raising a glass with joy.

Although I guess we should put our thoughts with the older generation who have had to put up with little or no income from their savings...bless...(unsympathetic...or jealousy...well i doubt i will be seeing triple locked state pension by the time i retire and as occupational pensions are thin on the ground I am struggling to see what this does for me).

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Portia profile image
By Portia Nina Levin
02nd Nov 2017 13:40

My mortgage company have already texted and emailed me to cheerfully explain how now they're going to HAVE to charge me more. Motherlovers!

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Replying to Portia Nina Levin:
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By andy.partridge
02nd Nov 2017 14:46

You must be chuffed they think you responsible enough to have a mortgage. I know I was when I got mine.

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Replying to andy.partridge:
Portia profile image
By Portia Nina Levin
02nd Nov 2017 15:10

I think that's simply a case of them having insufficient information to realise that I'm not, in fact, responsible enough.

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Replying to Portia Nina Levin:
Tom Herbert
By Tom Herbert
02nd Nov 2017 17:08

I also received a text about my mortgage today... I was surprised as it normally takes them 4-6 weeks to respond to events (such as me contacting them with a simple query).

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By ireallyshouldknowthisbut
02nd Nov 2017 15:49

I would venture to suggest this will have the exact same difference that the 0.25% drop had 12 months ago.

Ie very very little, its just a signal.

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paddle steamer
By DJKL
02nd Nov 2017 19:59

Well, in times past, when our debt levels were much higher, a quarter point would have been a significant extra amount, however never threatening more a bit of belt tightening.

These days, with our borrowing levels at their lowest in twenty years, it means the rent on one small office got swallowed, I am not going to get upset, especially as it was expected, though do expect a call when back in the office on Monday from one of the business owners checking that we are still "okay".

The fact is the way the banks behaved to our sector ( commercial property) after 2008 (well really from about 2010) means that we will never ,ever again be in a position for them to be a threat.

We took the pain from 2010-2016, disposing off, in a controlled manner ,various properties, this step forced on us by the bankers' volte face re lending criteria which itself was part caused by the abject institutional fear amongst bankers arising from professional valuers running scared of their own shadows.

So re us these days little impact, I expect similar re most of my clients, very few of whom, these days, have any bank borrowing.

The fact is the banks have reaped what they have sown and have massively reduced their target market, so much that their dependence now re residential lending and student accommodation scheme lending/similar will maybe again be their downfall; they have broken the cardinal rule re eggs in baskets.

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