How fast will interest rates fall - and where's the new normal?
This is Money Podcast
This is Money
4.1 • 650 Ratings
🗓️ 15 December 2023
⏱️ 59 minutes
🧾️ Download transcript
Summary
That's the firm view of the markets and most analysts, despite three members of the nine-strong Monetary Policy Committee disagreeing and voting for a rate hike this week.
The question has now shifted from how high will rates go, to when will they be cut?
The boldest predictions are for more than 1 per cent to be shaved off the base rate next year.
Does that fit with the Bank's 'hawkish hold' of the base rate this week?
On this podcast, Georgie Frost, Lee Boyce and Simon Lambert look at what next for interest rates both here and in the US - and whether markets are running away with themselves.
Plus, two years after they finally started to properly rise what does heading back to a point where rates may fall mean for borrowers, savers and investors?
Also on this week's show, is it better to use the central heating or an electric heater, the 'better' plan for a state pension triple-lock replacement, and the reasons Lee wants you to get in touch.
And make sure you listen to find out why the team want to know how long your kettle takes to boil...
Transcript
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| 0:00.0 | Welcome to This Is Money Podcast. I'm Georgie Frost and joining me and Simon Lambert today is Lee Boyce. |
| 0:08.9 | And coming up, have we reached peak interest rates? The Bank of England holds steady again, but why? |
| 0:14.8 | What next? And what does it all mean for your money? Also today, the best way to keep your house warm this winter? |
| 0:20.5 | How do we solve a problem like the Triple Lock? |
| 0:23.2 | And from Taylor Swift tickets to Ugs, a hot scam trends to look out for in 2024. |
| 0:28.6 | Plus, Lee wants something from you. |
| 0:31.6 | Don't forget, you start up to date with the latest breaking money news. |
| 0:34.6 | Just go to this ismoney.co.uk or download the app. |
| 0:38.3 | Don't forget, you can stay on top of what's going on in the markets by tuning in to the Digest and Invest podcast by Itaro. |
| 0:44.3 | Go to your regular podcast platform and listen on the go. Digest and Invest by Itoro, the podcast for those interested in trading and investing. |
| 0:51.3 | But first, the Bank of England opted once again to hold the base rate at 5.25% this week, |
| 0:58.0 | a move which will reinforce the view that we've reached the peak. |
| 1:02.0 | At one time, it was thought that rates would hit the heady heights of 6.5%. |
| 1:06.0 | There are other economic indicators which suggest that markets think the only way is down from |
| 1:12.0 | here. But it was by no means a unanimous decision. So where will they head next? And what does it |
| 1:17.1 | mean for mortgages, savings and the wider economy? Welcome. Lee, welcome Simon. Simon, |
| 1:23.1 | another hold. Why? Because if they'd have raised interest rates or cut them, that would have |
| 1:31.6 | really put the cat amongst the pigeons, wouldn't it? We're at the position now where pretty much |
| 1:38.1 | everybody has decided that rates have peaked, apart from three members of the Monetary Policy |
| 1:44.0 | Committee who decided that |
| 1:45.1 | they should go up, which was actually quite surprising. It was dubbed a hawkish hold because the |
| 1:52.3 | hawks wanted to raise rates. And it was so surprising that our very own news editor, Mike Sheen, |
... |
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