Markets have priced-in a 50bps hike, though it’s doubtful there would be any surprises if it kept on the 25bps hike. Real surprise would happen if it was 75 or 100 bps.
Also it’ll be interesting to see whether there are many dissenters on the MPC, and what form that dissent takes.
>A shortage of workers putting upward pressure on wages
I remain frustrated by this framing of the situation. My own organisation is not struggling to find applicants. It is, however, struggling to find qualified applicants who are willing to work for £22k in London.
Not a labour shortage at all.
“Organisation tasked by the government with keeping inflation under 2% actually uses main tool to do it’s job shocker”
Would’ve been nice had they acted before 9.4%, but hey ho.
Difficult choice between tackling inflation or unleashing civil unrest via mortgage crisis.
Up to only 2%…
They will attempt what Japan did and create a lost generation. Effectively shafting a generation to save a future one. Pay off your debts people, the times, they are a changing once more.
The Fed have just hiked 0.75% twice in a row. A 0.5% rise from the BoE is not enough.
What’s the word on the street for the next rise? Last number 75 points seemed most likely
The shortage of Labour caused by Brexit? or Covid fire and rehire?
You get what you pay for. Pay people more so they can afford to live, I’m dreading the gas price hikes and seeing this crap in the news just makes me mad.
50 basis points is nothing. History will remember them doing too little too late
Interest rates should be hiked to 5% straight away. The interest rate to inflation difference is staggering. The BOE has been caught sleeping. The people running the show are just incapable.
As was pointed out recently…
With Brexit, there would be a labour shortage and so Brits would be asked to fill in roles that EU staff had vacated as they left the UK.
To incentivise UK nationals, increased salaries would be offered.
This, of course, is **inflationary**.
How will rising interest rates lower inflation when it is causes by a war and shortages in oil/gas?
It will raise mortgage rates, which will push up rents and therefore push up cost of living surely?
The storm is here.
No shortage of workers. Just crap wages and people before have accepted those crap wages.
The UK is susceptible to rises in gas and oil prices, especially if Russian turns off the taps. One way to mitigate this is to make the £ strong, this is normally achieved through increasing interest rates. Trouble is the BoE is too concerned about doing anthing that might upset the housing market, which high interest rates would do.
The question is will the BoE sacrifice the economy and living standards at the altar of ever increasing house prices?
16 comments
Markets have priced-in a 50bps hike, though it’s doubtful there would be any surprises if it kept on the 25bps hike. Real surprise would happen if it was 75 or 100 bps.
Also it’ll be interesting to see whether there are many dissenters on the MPC, and what form that dissent takes.
>A shortage of workers putting upward pressure on wages
I remain frustrated by this framing of the situation. My own organisation is not struggling to find applicants. It is, however, struggling to find qualified applicants who are willing to work for £22k in London.
Not a labour shortage at all.
“Organisation tasked by the government with keeping inflation under 2% actually uses main tool to do it’s job shocker”
Would’ve been nice had they acted before 9.4%, but hey ho.
Difficult choice between tackling inflation or unleashing civil unrest via mortgage crisis.
Up to only 2%…
They will attempt what Japan did and create a lost generation. Effectively shafting a generation to save a future one. Pay off your debts people, the times, they are a changing once more.
The Fed have just hiked 0.75% twice in a row. A 0.5% rise from the BoE is not enough.
What’s the word on the street for the next rise? Last number 75 points seemed most likely
The shortage of Labour caused by Brexit? or Covid fire and rehire?
You get what you pay for. Pay people more so they can afford to live, I’m dreading the gas price hikes and seeing this crap in the news just makes me mad.
50 basis points is nothing. History will remember them doing too little too late
Interest rates should be hiked to 5% straight away. The interest rate to inflation difference is staggering. The BOE has been caught sleeping. The people running the show are just incapable.
As was pointed out recently…
With Brexit, there would be a labour shortage and so Brits would be asked to fill in roles that EU staff had vacated as they left the UK.
To incentivise UK nationals, increased salaries would be offered.
This, of course, is **inflationary**.
How will rising interest rates lower inflation when it is causes by a war and shortages in oil/gas?
It will raise mortgage rates, which will push up rents and therefore push up cost of living surely?
The storm is here.
No shortage of workers. Just crap wages and people before have accepted those crap wages.
The UK is susceptible to rises in gas and oil prices, especially if Russian turns off the taps. One way to mitigate this is to make the £ strong, this is normally achieved through increasing interest rates. Trouble is the BoE is too concerned about doing anthing that might upset the housing market, which high interest rates would do.
The question is will the BoE sacrifice the economy and living standards at the altar of ever increasing house prices?