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Cost of Living

Tony Towner said:
So you are disregarding the first 3 years of the decade? The 2 years after the BOE took control of rates are also significantly higher. It's still not true.
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You literally said what I said was wrong.

"For the majority of the 90s it wasn't much higher than this either."

That quite clearly is correct.
 
Elephant Pyjamas said:
You literally said what I said was wrong.

"For the majority of the 90s it wasn't much higher than this either."

That quite clearly is correct.
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It really isn't. There's 5 years where it clearly wasn't. That's not a majority
 
The 7 years I posted other than perhaps 6 months or so if you want to be really autistic are "not much" higher than they are now.

Which is exactly the conclusion I drew when I looked at the history and made the original point.
 
I'll leave it because I cba and it's boring for others. LJ was correct though
 
Far from it as I'm able to count. Calling people autistic isn't very nice is it?
Have a lovely evening
 
Isn't this sort of 5-10% range about the norm? Obviously had a pretty long spell with rates extremely surpressed but those <1% rates were literally an historic low.

Can see how people were lulled into a false sense of security by the prolonged period of low rates but it was always unlikely to last forever when you look at the historic range. Was quite a few people where I used to work who really felt the squeeze with the sharp increase in recent years. Found it really surprising with some of them, particularly one who's job was financially based, where they must have borrowed to the absolute limit when rates were low and interest affordable. They would've seen substantial increases in income over those fixed term periods but either not enough to cover the increased interest that came with higher rates or too much of that extra income had gone on other lifestyle changes in the interim period - flash cars, far flung holidays and hair replacement seemed the most popular of those.
 
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MARKakaJIM said:
Isn't this sort of 5-10% range about the norm? Obviously had a pretty long spell with rates extremely surprised but those <1% rates were literally an historic low.
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Depends on what period of time is considered "normal?"

10 years? 25 years? 50 years?
 
PuntsWolf said:
Wow. So 10 out of 27 is not a lot still?


44% of the entries are 19% (or more higher). That is quite a lot
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And still not the MAJORITY, which was my original comment that I was told was wrong, and then you jumped in and were also wrong.

Sake.

If you're going to come in and be massively pedantic, perhaps get it right?
 
As I see it interest rates dropped to absurdly low and unsustainable levels post credit crunch, around 2008. They stayed there for 15 years or so which was long enough to feel very ‘normal’ for some, but still (absurdly) low to those long enough in the tooth to have experienced otherwise.

Those cheap rates did as much harm as they did good. The cheap ‘08 money with crashed house prices fuelled the spectacular climbs ‘09-‘11 and then the second wave from ‘12 onwards until the inevitable rate rises we’re seeing now eventually putting a stop to it.

Thing is those rates also created opportunities for those able to borrow extra. It made no sense to pay off a mortgage and effectively pumping a top-up loan at 1% into (for e.g.) a massive extension which would bring large capital growth was a no brainer. It’s the same madness that fuelled the buy-to-let frenzy and a raft of other areas that could return a whole lot more than the 1% giveaway. All that’s dependent upon recognising rates would go back up eventually and having a time-frame strategy to exit within that which we know many never did.

We are seeing painful consequences now for everyone who borrowed cheaply. Those who borrowed to speculate will have little sympathy, those buying a home who have been caught off-guard much more so.

It’s very wrong that cheap money was able to be exploited in such a way and on such a scale, but it’s what happens when balance is lost and we see extremes. The BoE predicts interest rates of 3.6% in 2026. That to my mind would be about as good a ‘normal’ as is possible. Hopefully some steady reductions along the way would ease the pain of the transition but in the long run that sort of rate would probably be better for everyone.
 
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