Hi Felicity,

A few months ago, I was thinking we would get a rate rise by October/November but the MPC still haven't budged from a 9-0 vote so far on keeping rates on hold. They seem in no apparent hurry for fear of messing up the economy any more.

Maybe it will stretch out to first quarter of 2010 before a rise, how about a Poll divided into 3 month intervals?

Hi ATM,

I think savers are certainly getting pretty frustrated just now but agree the 'rise button' will probably be tapped soon. I will be interested to see if your predictions come to pass - do you think we will see a rise by the end of the year?

Felicity

Hi Felicity

Most probably the B of E rate setters are looking and waiting to see how the QE package is going to fare up but I imagine that they have already got some fingers on the "Rise Button". If rates here stay this low too long and other major economies rase their rates before the UK then that could see more money heading over to countries with the higher rates.

The low rates at present are helping a minority with the good, early trackers but I would say that the vast majority are losing out (ie Savers).

I will put my gambling hat on and say 3.5% to 4.0% Bank of England Base Rate by end of 2011, with SVR mortgage rates of around 6.5%. Too early to say for what happens after that but I hope we do not get back to the 10% to 15% base rates but they have happened during previous recessions/crashes and when unemployment reaches high levels like the early 80's.

Hello,

As you have probably already seen, the Monetary Policy Committee has voted to keep the base rate at 0.5% for a further month at least (see my article Base rate remains unchanged)

It is widely believed that the next move the Bank will make will be to increase the rate, but would you have done so today? Or would you have lowered it to an incredible 0%?

Make sure you share the reasons for your decision.

Personally, I agree with the committee's decision - the climate is simply too uncertain to do otherwise - but what do you think?

Felicity