Great timing. BOE governors always have excellent financial qualifications….but not one of them is in the social sciences that would at least allow some understanding of the social impact of their decisions.
Inflation 5% Interest rates 0.25%. Lol. I rest my case.
Now watch as variable rate mortgages and loan interest rates go up instantly, whilst savings accounts remain the same.
It’s like a death by a thousand cuts with prices rising across the board this year. Food, fuel, accommodation, heating… And pay increasing no where near inflation.
My concern is that the inflation we are currently experiencing is not demand driven. As a result increased interest rates will dampen demand and won’t affect things like gas and petrol prices. It appears to me like a bad recipe.
With inflation at 5.1% (or 7.1% if you still think that the RPI is a better indicator of the cost of living), that means that real interest rates are somewhere between -4.8% and -6.8%.
Even with this tiny rise in interest rates, that must be some kind of record low!
Going to be very interesting watching the public sector pay next year. Even for those outside the sector, they’ll set a bit of a tone for how much the rest of society should be expecting given we’ve got a labour shortage. With the cap gone, it could be decent but more likely it’ll be “oh no we can’t afford that”.
Looks like the Scottish government are opening negotiations at 2% pay rises, which is not exactly eye watering.
Inflation was bound to jump as it has everywhere in the world. We have had a demand driven push for the economy while production of all goods got fucked over by the pandemic.
I wonder who actually bothers working around these things, instead you should buy assets, be it houses or stocks or crypto. They are the way to get money, not saving accounts. The banks are not your friends anymore, unless you are on the 1% side
Great news but it isn’t enough.
Hopefully another interest rate Rise at the next BOE meeting.
Well it’s a start.
With inflation at 5%, interest rates should be somewhere near. We need to get back to “normal” rates similar to what was expected pre-2007 – certainly more like 2-3% than 0. And the Bank needs to set out a clear plan for how to get there so people can start to price it into their decisions.
12 comments
[removed]
Incoming hike in mortgage rates then.
Great timing. BOE governors always have excellent financial qualifications….but not one of them is in the social sciences that would at least allow some understanding of the social impact of their decisions.
Inflation 5% Interest rates 0.25%. Lol. I rest my case.
Now watch as variable rate mortgages and loan interest rates go up instantly, whilst savings accounts remain the same.
It’s like a death by a thousand cuts with prices rising across the board this year. Food, fuel, accommodation, heating… And pay increasing no where near inflation.
My concern is that the inflation we are currently experiencing is not demand driven. As a result increased interest rates will dampen demand and won’t affect things like gas and petrol prices. It appears to me like a bad recipe.
With inflation at 5.1% (or 7.1% if you still think that the RPI is a better indicator of the cost of living), that means that real interest rates are somewhere between -4.8% and -6.8%.
Even with this tiny rise in interest rates, that must be some kind of record low!
Going to be very interesting watching the public sector pay next year. Even for those outside the sector, they’ll set a bit of a tone for how much the rest of society should be expecting given we’ve got a labour shortage. With the cap gone, it could be decent but more likely it’ll be “oh no we can’t afford that”.
Looks like the Scottish government are opening negotiations at 2% pay rises, which is not exactly eye watering.
Inflation was bound to jump as it has everywhere in the world. We have had a demand driven push for the economy while production of all goods got fucked over by the pandemic.
I wonder who actually bothers working around these things, instead you should buy assets, be it houses or stocks or crypto. They are the way to get money, not saving accounts. The banks are not your friends anymore, unless you are on the 1% side
Great news but it isn’t enough.
Hopefully another interest rate Rise at the next BOE meeting.
Well it’s a start.
With inflation at 5%, interest rates should be somewhere near. We need to get back to “normal” rates similar to what was expected pre-2007 – certainly more like 2-3% than 0. And the Bank needs to set out a clear plan for how to get there so people can start to price it into their decisions.