Only people warning of a recession are the richest that have benefitted from cheap rates to park their money in property and equities whilst regular people get 0.1% interest on the cash they do have.
Checks savings account rate… still 0.05% cool, cool.
Edit: wow didnt expect this to go top it was a bit of a tongue in cheek comment! I dont really use the savings account other than for budgeting for things like car insurance and a bit of emergancy cash.
I have a shares ISA and a cash one to “make my main savings work” so to to speak and a little imvestment account, but appreciate all the Martin Lewis esk advice from people.
Another pathetic bare minimum increase from the money printers.
Remember not to ask for a wage rise like a good little serf because the central bank is doing nothing to stop inflation getting out of control.
Get on a fixed rate mortgage, reduce your debts or consolidated them as best you can, have an emergency fund.
Sorry if this is ignorant, but I can’t see an increase from 0.75% to 1% interest having an enormous impact on inflation? It feels kind of like trying to put out a house on fire with a single bucket of water…
On one hand, it’s only gone up .75% in last last year or so. On the other, it has quadrupled. This is the problem with low interest rates…
My mortgage provider emailed this news to me Tuesday before sending a hasty “oops sorry, that email was a mistake”
[deleted]
The can has been kicked down the road so much that we’ve come up against a dead end. Keep rates low and we will have stagflation, raise rates and we will compound the coming recession.
The fiscal tools have been exhausted. It’s time for us to face the consequences of the capitalist snake eating its own tail.
Apparently everyone expects 2% interest by the year end. They’ll keep putting it up throughout the year. Inflation us currently expected to hit around 9% this year before falling down. 5% ish next year then normal levels.
I remember seeing that in most economies having an independent central bank with a remit to control inflation doesn’t hurt the economy but helps with inflation but I’m not sure this will be true now. We had too much debt in 2008 and after the banker’s recession, once we’d bailed them out they resumed business as usual.
Much needed correction that’s way overdue.
Us Millenials are now experiencing nearly everything aside from a World War in the last 100 years, in half the time.
Boomers can’t complain anymore, we are about to have it even worse than the 50’s to 80’s.
Left hand, meet right hand.
Can some explain to me how putting interest rates up stops inflation rising. I mean if my mortgage goes up that inflation isn’t it ,
The guy who predicted the last recession 2 in years in advance (Michael Burry) gave a dire warning 6 months ago that we’re sleep walking into another.
and of course the tories will be more interested in appointing blame than doing anything to mitigate the potential impact
If the logic here is to reduce demand in the economy to try and reduce inflation then you could do this by taxing rich people and taking that money out of the economy, instead of increasing the cost of borrowing for everyone.
So glad we shut down society for 2 years instead of protecting the most vulnerable people and the rest carrying on. Who could have predicted there would be consequences??!?!
Since the tories have been in power, it’s been a shitshow. I get Labour isn’t amazing either, but I honestly don’t understand how some working class (people I know as well) still think the tories are the party to do it.
Honestly, I think it’s because they buy in the character that is bumbling Boris.
They’ve raised interest rates to 1% and they’re talking about raising them as high as 2% to 2.5% by next years.
That means that real interest rates have fallen to minus 6% and could fall as low as minus 8% by the end of the year (the interest rate minus CPI inflation).
Is that the lowest we’ve ever seen? Has there ever been a time when borrowers have seen their debts devalued by as much as this in the UK?
Hammer and sickles are a good business to get into rn I think
Seems like the right move by the bank but I think the government has to do something to improve consumer confidence. ATM I’m hearing a lot of people worried about the next energy cap hike in the autumn, the government should do something to make this more predictable so people know where they stand.
Ofc there is going to be a recession! You’ve made everyone’s cost of living go up with energy and fuel increases. So now they have less money to spend on going out and shopping and wanting to spend. It’s not rocket science
Letter about my mortgage getting more expensive to hit my doormat tomorrow AM. Letter about my savings account rates increasing to hit my doormat in about 2 months. Standard behaviour from the banks.
25 comments
Only people warning of a recession are the richest that have benefitted from cheap rates to park their money in property and equities whilst regular people get 0.1% interest on the cash they do have.
Checks savings account rate… still 0.05% cool, cool.
Edit: wow didnt expect this to go top it was a bit of a tongue in cheek comment! I dont really use the savings account other than for budgeting for things like car insurance and a bit of emergancy cash.
I have a shares ISA and a cash one to “make my main savings work” so to to speak and a little imvestment account, but appreciate all the Martin Lewis esk advice from people.
[The official BoE publication](https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2022/may-2022) has a lot more detail.
This is just awful. Growth is now forecast to be pretty much zero until at least [2025](https://twitter.com/DuncanWeldon/status/1522170514273452034?t=H9ON8S_1Wo94VrlJm9EYYg&s=19). Inflation might hit [10%](https://twitter.com/DuncanWeldon/status/1522170963969953793?t=TBcVv-MuB2yWZLl3f_es6Q&s=19) or higher. Textbook stagflation.
This is going to suck.
Another pathetic bare minimum increase from the money printers.
Remember not to ask for a wage rise like a good little serf because the central bank is doing nothing to stop inflation getting out of control.
Get on a fixed rate mortgage, reduce your debts or consolidated them as best you can, have an emergency fund.
Sorry if this is ignorant, but I can’t see an increase from 0.75% to 1% interest having an enormous impact on inflation? It feels kind of like trying to put out a house on fire with a single bucket of water…
On one hand, it’s only gone up .75% in last last year or so. On the other, it has quadrupled. This is the problem with low interest rates…
My mortgage provider emailed this news to me Tuesday before sending a hasty “oops sorry, that email was a mistake”
[deleted]
The can has been kicked down the road so much that we’ve come up against a dead end. Keep rates low and we will have stagflation, raise rates and we will compound the coming recession.
The fiscal tools have been exhausted. It’s time for us to face the consequences of the capitalist snake eating its own tail.
Apparently everyone expects 2% interest by the year end. They’ll keep putting it up throughout the year. Inflation us currently expected to hit around 9% this year before falling down. 5% ish next year then normal levels.
I remember seeing that in most economies having an independent central bank with a remit to control inflation doesn’t hurt the economy but helps with inflation but I’m not sure this will be true now. We had too much debt in 2008 and after the banker’s recession, once we’d bailed them out they resumed business as usual.
Much needed correction that’s way overdue.
Us Millenials are now experiencing nearly everything aside from a World War in the last 100 years, in half the time.
Boomers can’t complain anymore, we are about to have it even worse than the 50’s to 80’s.
Left hand, meet right hand.
Can some explain to me how putting interest rates up stops inflation rising. I mean if my mortgage goes up that inflation isn’t it ,
The guy who predicted the last recession 2 in years in advance (Michael Burry) gave a dire warning 6 months ago that we’re sleep walking into another.
and of course the tories will be more interested in appointing blame than doing anything to mitigate the potential impact
If the logic here is to reduce demand in the economy to try and reduce inflation then you could do this by taxing rich people and taking that money out of the economy, instead of increasing the cost of borrowing for everyone.
So glad we shut down society for 2 years instead of protecting the most vulnerable people and the rest carrying on. Who could have predicted there would be consequences??!?!
Since the tories have been in power, it’s been a shitshow. I get Labour isn’t amazing either, but I honestly don’t understand how some working class (people I know as well) still think the tories are the party to do it.
Honestly, I think it’s because they buy in the character that is bumbling Boris.
They’ve raised interest rates to 1% and they’re talking about raising them as high as 2% to 2.5% by next years.
That means that real interest rates have fallen to minus 6% and could fall as low as minus 8% by the end of the year (the interest rate minus CPI inflation).
Is that the lowest we’ve ever seen? Has there ever been a time when borrowers have seen their debts devalued by as much as this in the UK?
Hammer and sickles are a good business to get into rn I think
Seems like the right move by the bank but I think the government has to do something to improve consumer confidence. ATM I’m hearing a lot of people worried about the next energy cap hike in the autumn, the government should do something to make this more predictable so people know where they stand.
Ofc there is going to be a recession! You’ve made everyone’s cost of living go up with energy and fuel increases. So now they have less money to spend on going out and shopping and wanting to spend. It’s not rocket science
Letter about my mortgage getting more expensive to hit my doormat tomorrow AM. Letter about my savings account rates increasing to hit my doormat in about 2 months. Standard behaviour from the banks.