I know this is being discussed to the hilt, but I am no economist and I find it depressing to read about oil prices and elections and how all of this is going to influence the inflation rate...
All I'm wondering is, if the predictions come true and ECB base rates may rise as high as 5% in 2007, would I be better off trying to fix at 4.5% for two years? We started at 3.6% and these constant rises start making me feel uncomfortable. What is the outlook that they might come down again? I know noone can answer that, but I'm just not sure whether to sit tight and hope for the storm to pass or whether to just try and fix before it gets too bad.
Any views?
All I'm wondering is, if the predictions come true and ECB base rates may rise as high as 5% in 2007, would I be better off trying to fix at 4.5% for two years? We started at 3.6% and these constant rises start making me feel uncomfortable. What is the outlook that they might come down again? I know noone can answer that, but I'm just not sure whether to sit tight and hope for the storm to pass or whether to just try and fix before it gets too bad.
Any views?