bert bloggs Posted February 23, 2022 Share Posted February 23, 2022 The pound seems to have climbed back a bit and it now looks as if interest rates are going up in the UK,do you reckon the pound will go up further? Link to comment
BritManToo Posted February 23, 2022 Share Posted February 23, 2022 (edited) When a country has low interest rates it's currency becomes worthless. Thai mortgage rate 4.75%, bank account 1.2% UK mortgage rate 1.8%, bank account 0% Why would I park my money in a country that pays no (or low) interest)? The problem being, many western countries have sold mortgages to people who couldn't repay if the interest rates rise. So you have the situation, low interest rates and worthless currency Vs huge amounts of mortgage defaults. Edited February 23, 2022 by BritManToo Link to comment
Kwasaki Posted February 23, 2022 Share Posted February 23, 2022 I reckon it will stay around the low to mid 40 for many to come. When I came Thailand I planned a baht rate at 35 to £. 1 Link to comment
bert bloggs Posted February 23, 2022 Author Share Posted February 23, 2022 When we came it was 71 to the pound i work on 40 these days. Link to comment
Kwasaki Posted February 23, 2022 Share Posted February 23, 2022 26 minutes ago, bert bloggs said: When we came it was 71 to the pound i work on 40 these days. When I came in 2005 in Sept 2005 I got my money over at 75 it all has been downhill since. Link to comment
roo860 Posted February 23, 2022 Share Posted February 23, 2022 6 minutes ago, Kwasaki said: When I came in 2005 in Sept 2005 I got my money over at 75 it all has been downhill since. Newbie! ???????????? 1 Link to comment
Kwasaki Posted February 23, 2022 Share Posted February 23, 2022 14 minutes ago, roo860 said: Newbie! ???????????? Yeah and a lucky one. How much is 800,000 now. Link to comment
Oxx Posted February 23, 2022 Share Posted February 23, 2022 5 hours ago, BritManToo said: When a country has low interest rates it's currency becomes worthless. The US Federal funds rate is currently 0.25%. Pretty sure the US Dollar isn't "worthless", though. 2 Link to comment
Kwasaki Posted February 24, 2022 Share Posted February 24, 2022 Well it's not at it's lowest yet. Link to comment
scubascuba3 Posted May 5, 2022 Share Posted May 5, 2022 (edited) Interest rate up to 1% today but pound weakens further usually the opposite happens, not a good sign Edited May 5, 2022 by scubascuba3 Link to comment
bert bloggs Posted May 5, 2022 Author Share Posted May 5, 2022 1 hour ago, scubascuba3 said: Interest rate up to 1% today but pound weakens further usually the opposite happens, not a good sign You can blame it on the <deleted> outlook they gave for the UK economy 1 Link to comment
placeholder Posted May 10, 2022 Share Posted May 10, 2022 On 2/23/2022 at 11:44 AM, BritManToo said: When a country has low interest rates it's currency becomes worthless. Thai mortgage rate 4.75%, bank account 1.2% UK mortgage rate 1.8%, bank account 0% Why would I park my money in a country that pays no (or low) interest)? The problem being, many western countries have sold mortgages to people who couldn't repay if the interest rates rise. So you have the situation, low interest rates and worthless currency Vs huge amounts of mortgage defaults. I don't know about elsewhere but in the US it's only a minority of mortgage are variable interest. Actually, for the who have mortgages at fixed interest rates, high inflation is mostly a good thing Link to comment
HauptmannUK Posted May 22, 2022 Share Posted May 22, 2022 The UK economy is in a terrible state. My extended family have a motor trade business that's been established 101 years (car sales, servicing etc) and the outlook has probably not been worse since the 1970's. The price of parts has gone through the roof (e.g. pair of aftermarket brake discs that were £30 last year, now £47 - same part no. same supplier). Many parts in short supply due to transport and distribution issues, e.g. clutch kits hard to get. We used to buy certain German car parts direct from a distributor in Germany on 24 hour lead time. Now we wait for 5 days and get import taxes and fees added - no longer viable. Various automotive lubricants in short supply. My brother's company, built up over 25 years, 16 employees, exporting fresh premium British meat (think Welsh lamb, Scottish venison) is closing down. Its impossible for him to compete. Transportation and customs charges have increased more than five-fold and taking three times as long. The country seems to be seizing up. Housing market stoked up over last two years now seems ripe to be crashed by interest rate rises. Relatively higher inflation in UK as compared to Thailand will push pound down relative to THB. I certainly wouldn't want to be depending on one of those 'frozen' pensions! 1 Link to comment
HauptmannUK Posted May 22, 2022 Share Posted May 22, 2022 On 5/10/2022 at 4:26 AM, placeholder said: I don't know about elsewhere but in the US it's only a minority of mortgage are variable interest. Actually, for the who have mortgages at fixed interest rates, high inflation is mostly a good thing Many in UK have fixed rate mortgages - mostly 2-5 years, some longer. Problem is these deals expire and low rates no longer available. Also first time buyers' rates are going up - which tends to cut the legs from under the market. The UK economy tends to pivot around the housing market and so I don't think the outlook is good... Link to comment
scubascuba3 Posted May 22, 2022 Share Posted May 22, 2022 It's not just UK, it's a worldwide problem. The last interest rate rise weakened sterling so we can't even hope for that 1 Link to comment
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