Money Blog: Big Banks Announce Interest Rate Hikes One After Other - And 'They're Not Small'

[webbo3]

https://news.sky.com/story/money-consumer-news-latest-live-13040934

Yep, Labour are in power..

[nicebloke1]

Turning AB on just lately seeing all this doom and gloom is driving me to buy a morning paper. Oh hang on. :○)

[Old_Geezer]

For loans only, or for deposits too ?

[ToraToraTora]

well I'll go to the foot of our stairs!

[ToraToraTora]

The link says mortgage rates. It basically means that the banks think the BOE cut last week was an error and they'll have to rise sharply. So the banks are pre empting that. Clearly the banks expect inflation to rise in the comming months.

[nicebloke1]

You better keep your fingers crossed for the coming months then TTT, and you may be able to jump for joy and say, told you so.

[ToraToraTora]

No need, I've worked in banks for most of my career, I know, the signs are clear. I'm not worried for myself it's those who can just about live with their mortgage now. The sad thing is many of the sad muppets probably voted Labour not expecting they would be shafted like this.

[sp1814]

Intrerest rate hikes?

On savings too?

 

😀

[david small]

They should have left things as they were. Meddle and confusion arises.

[Pegasus16]

"Intrerest rate hikes?

On savings too?"

 

Are they going up now?

[newmodarmy]

It's not pushing up interest rates on current and shortsavings at the moment, except perhaps for some longer term fixed savers. It's longer term rates that were falling but are now edging back up or at least not falling as quickly as they were, and it's therefore going to affect fixed rate mortgages such as those fixed for 5 years, and some cheap rate mortgage deals are being pulled.

[newmodarmy]

"shortsavings " should have said "short-term savings" 

[douglas9401]

We're being played.

Again.

[davebro3]

My bank has just cut the rate on its variable savings account.

[Pegasus16]

^ same here, Again, what a mess this ameteur shambles of a thir grade UKGov is doing, totally out of their depth, what a shambles.

[Pegasus16]

Sorry, "thir grade UKGov"

 

Third.

[newmodarmy]

Current rates  are falling  based on the fall in the base rate. The base rate may have fallen more quickly if the budget had been more neutral. But longer terms rates (2+ years on) which were falling are starting to edge back up, so the base rate reductions that were predicted for 2025 may not happen and base rate may edge back up in 2025/26. Your savings account rates should move back up slightly in a year or two too.

[Old_Geezer]

In a year or two ?

Oh, it's like petrol prices then.

[youngmafbog]

Long term mortgages are generally given using monie raised on the money market.  Very few mortgages are using 'savers' cash these days.

Clearly the money Guys (and Gals) think long term interest rates will increase and so any money available to borrow will be at those rates.  This is hardly surprisong given the anti business and anti growth budget we have just had.

It will get worse though once the min wage, the extra EHI and the GOAS's eplyment laws take hold next year.  What little growth Sunak had achieved will be gone now.

Grim times ahead, I feel so sorry for those with Mortgages, rent and kids to pay for.  Not so sorry for the feckless and public sector that seems to be all this Government cares about.

[pastafreak]

Thankfully no mortgage here. It looks like my daughter and her partner are stuck with their miniscule flat for a while longer.

I had a nice email from my bank this morning. They very kindly let me know that they'd looked at what other banks were doing, and they're following suite and changing (lowering) interest on my savings. Jolly good!