Choose 4.5 fixed term or 3.9 variable with Bank of Ireland

[misterchuck]

Hi,
I know so many questions are asked about whether to go fixed or variable.
Ours is 3 years at 4.5% fixed or choose 3.9 variable.
Are interest rates likely to increase again. I find it hard to predict; hence seeking opinions here.
Thanks in advance.

 

[Protocol]

ECB officials have signalled that they will increase interest rates further, although at a slower pace.

The fight against inflation

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

www.ecb.europa.eu

1st June:

"Today, inflation is too high and it is set to remain so for too long. We are determined to bring it back down to our 2% medium-term target in a timely manner.

That is why we have hiked rates at our fastest pace ever – and we have made clear that we still have ground to cover to bring interest rates to sufficiently restrictive levels.

These hikes are already feeding forcefully into bank lending conditions, including here in Germany. And we know that – having hiked so far and so fast – considerable tightening is still in the pipeline.

But it remains uncertain just how much stronger the transmission of our policy will be.

So, we need to continue our hiking cycle until we are sufficiently confident that inflation is on track to return to our target in a timely manner. At the same time, we need to carefully assess the strength of monetary policy transmission to financing conditions, the economy and inflation."

 

[misterchuck]

Ya - it is a hard one to predict.

 

[time to plan]

Hi,
I know so many questions are asked about whether to go fixed or variable.
Ours is 3 years at 4.5% fixed or choose 3.9 variable.
Are interest rates likely to increase again. I find it hard to predict; hence seeking opinions here.
Thanks in advance.

What would it mean to you if that variable rate increased to 6% or higher? Could you cope easily?