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Lower interest rates = Cheaper credit = Rising asset prices (ie houses, stock market etc.)
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Just to put this question in context, if i knew that interest rates where to jump in the next year to 10% for the next 40 years, I would take out a large loan at fixed low interest rate now, ready for the interest rise :)
But what would be a good investment if you knew that interest rates would move between 0 and 2% for 40 years? |
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erm..... property and/or stock market.
If you knew that permanently low interest rates were going to be particular to the UK then you would buy foreign assets as you would also gain from a depreciating sterling. |