Germans want ECB rate rise

Looks like the low rates for savings might change
http://uk.mobile.reuters.com/article/idUKKBN14P0OE

The ECB have a number of options if they want to tighten monetary policy. Reducing QE might be the first step before touching rates.

Even if rates do rise, there is no guarantee that the increases will be passed on to consumers. Most banks have surplus deposits. The US experience with raising rates was that consumer rates only slightly increased, well below the FED increase.
 
Most banks, but not our Irish banks

AIB and BoI are not in need for more deposits. These banks have healthy loans to deposits ratios.

PTSB, Ulster Bank and KBC Ireland have speedily improving loans to deposit ratios.

In general, the banks need more loans, not deposits.
 
But savings accounts might become popular.

Also we might in 5 years have tracker customers complaining that they should have fixed.
 
But savings accounts might become popular.

Also we might in 5 years have tracker customers complaining that they should have fixed.

No. A tracker is based on a set margin above the ECB rate. For reasons that seemed to make sense to banks in the early 2000s most are on a very low margin. Unless banks charge a lower margin voluntarily at some point in the future trackers will be cheaper than any other loan, irrespective of the prevailing CB rates..
 
Well if someone fixes now at 3.8% for five years and the ecb rate goes to 4% or higher in two years then there well may be people saying they should have fixed. Unlikely but it is a possibility.
 
Well if someone fixes now at 3.8% for five years and the ecb rate goes to 4% or higher in two years then there well may be people saying they should have fixed. Unlikely but it is a possibility.

But trackers now are generally much less than 3.8%. More like 1% to 1.5%
 
But Elcato is correct, that is the point I was making. I know it sounds mad pie in the sky stuff. But when I started out people were in double digits. If you asked me then that a person could pay 1% I'd say you should be in the lunatic asylum.
 
If the alternative to a tracker was a lifetime fix or even a 20 year fix then perhaps, but these are not generally available.
 
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