Risk of prices becoming embedded? You show me 1 time, literally just once when prices have risen like this then gone back. These prices are here to stay, we all know that.
1.75% is still way below where it needs to be. The rate increases should have started 10 years ago and delaying it has just amplified the pain many about to feel.
> Increasing interest rates is one way to try and control inflation as it raises borrowing costs.
> This should encourage people to borrow and spend less. It can also encourage people to save more.
this just completely falls apart when it’s the *essentials* that people are struggling to buy, it’s not like people can cut back too much on food or energy and save instead
I worry the BoE just wants to be seen to be doing *something* but I don’t see how this is actually going to help offset inflation, there’s very obvious costs though, particularly for first time buyers who have been forced to buy at the limits of affordability (it’ll probably end up increasing rents eventually too as landlords try to offset the costs of a more expensive mortgage)
Rate hike aint going to do anything. Inflation isn’t due to an overheated economy or monetary policy, its due to a shortage in commodities causing the price of goods to increase. This isn’t going to change that. All its going to do is harm the economy.
The whole bloody system is based on debt. How in the fuck are we meant to save when our earnings can’t cover food and shelter costs? God we need some bloody change
> This should encourage people to borrow and spend less. It can also encourage people to save more.
People have lost a lot of spending power and can no longer save as they can barely cover the essentials. Traditional thinking is not going to work when we are seeing the worst crisis many people have ever experienced. People are going to go hungry, be made homeless at insane rates and potentially freeze to death; acting as if this is normal economic turmoil is not going to change that.
Luckily he doesn’t need to do much. Price caps will help him
7 comments
Risk of prices becoming embedded? You show me 1 time, literally just once when prices have risen like this then gone back. These prices are here to stay, we all know that.
1.75% is still way below where it needs to be. The rate increases should have started 10 years ago and delaying it has just amplified the pain many about to feel.
> Increasing interest rates is one way to try and control inflation as it raises borrowing costs.
> This should encourage people to borrow and spend less. It can also encourage people to save more.
this just completely falls apart when it’s the *essentials* that people are struggling to buy, it’s not like people can cut back too much on food or energy and save instead
I worry the BoE just wants to be seen to be doing *something* but I don’t see how this is actually going to help offset inflation, there’s very obvious costs though, particularly for first time buyers who have been forced to buy at the limits of affordability (it’ll probably end up increasing rents eventually too as landlords try to offset the costs of a more expensive mortgage)
Rate hike aint going to do anything. Inflation isn’t due to an overheated economy or monetary policy, its due to a shortage in commodities causing the price of goods to increase. This isn’t going to change that. All its going to do is harm the economy.
The whole bloody system is based on debt. How in the fuck are we meant to save when our earnings can’t cover food and shelter costs? God we need some bloody change
> This should encourage people to borrow and spend less. It can also encourage people to save more.
People have lost a lot of spending power and can no longer save as they can barely cover the essentials. Traditional thinking is not going to work when we are seeing the worst crisis many people have ever experienced. People are going to go hungry, be made homeless at insane rates and potentially freeze to death; acting as if this is normal economic turmoil is not going to change that.
Luckily he doesn’t need to do much. Price caps will help him