Hi to all, I'm trying to plan my future and researching about what every ones thoughts and predictions are for the economy and interest
I personally believe that interest rates should stay on hold at 0.5% base rate for at least a year longer. I think the economy is still very weak trading is slow export is not what it used to be. I think if the interest rates was to be raised the shock wave of homes being repossessed will be out of control. House prices has risen so high probably enough for the next ten years ahead of us, a lot of borrowing was made around a fake economy ( housing Market ). If the housing market was to crash, house prices would fall and damage confidence causing a snow ball effect. The banks might have homes that they repossessed with negative equity. I think the only thing keeping things from collapse is low bank of England base rate. Please give me your thoughts and feelings on what you think 2011 economy, bank of England base rate and house prices prediction?
