Leekbrookgull
Well-known member
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[Finance] Base rate increase.
- Thread starter Leekbrookgull
- Start date
Deleted member 37369
Well-known member
- Aug 21, 2018
- 1,994
Pevenseagull
Anti-greed coalition
- Jul 20, 2003
- 19,665
Fortunately my landlord can just put up my rent so he won't be out of pocket.
I really fail to understand how this curbs the current inflation problem. Inflation is not being driven by things that an interest rate rise will impact. It will stop spending certainly because this just makes a terrible situation for people that are already struggling far worse.
mejonaNO12 aka riskit
Well-known member
"I don't know why people with tracker mortgages moan about the interest rates. When I bought my house the interest rates were...."
Yeah, but your house was worth £16.78 and a bag of scampi fries.
Yeah, but your house was worth £16.78 and a bag of scampi fries.
According to both the BBC and Sky News experts/interviewees, they all predict that, then graduated falls.
Whilst the US Fed are going further with increases after that.
Out of 27.8m UK households, this will affect:
Whilst the US Fed are going further with increases after that.
Out of 27.8m UK households, this will affect:
- 2.9m households with a variable rate mortgage; and
- 1.8m households with fixed rate mortgages, deals ending in 2023.
It’s not quite that simple though….way less than half of households have mortgages…..and those that have savings will have more to spend. Agree it’s another horrible kick in the nuts for those struggling though.
THIS .... with bells on. Unless the BoE really think hiking interest rates up will lower energy costs which are one of the main inflationary things
pb21
Well-known member
- Apr 23, 2010
- 6,338
The Fed raised their rate by 0.25% yesterday and after Powell gave a conference indicating that they may not have to go much further...
Farehamseagull
Solly March Fan Club
And fixed rate mortgage deals continue to fall from the October peak. See if that more positive news gets reported.
I always said the same. Then the BoE explained that these hikes are to prevent secondary inflation.THIS .... with bells on. Unless the BoE really think hiking interest rates up will lower energy costs which are one of the main inflationary things
https://www.bankofengland.co.uk/explainers/why-are-interest-rates-in-the-uk-going-up
The argument that they dampen a spiral of high wage increases (in effect private sector) and resulting price rises. Short term pain to prevent enduring high inflation that would destroy the capital value of savings in real terms, and exacerbate the wages/price hikes pressure.
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They're already 0.5% higher than the BoE's and Jerome Powell sees rates continuing to rise until December this year.
https://uk.finance.yahoo.com/news/f...EzLgzD1UrQ_l1mO1F2nD3GQskcin3FxNVHPgxIl4f3_zT
Also covered on Ian King Live today.
Tom Hark Preston Park
Will Post For Cash
- Jul 6, 2003
- 70,366
What a lovely day to reportTHIS .... with bells on. Unless the BoE really think hiking interest rates up will lower energy costs which are one of the main inflationary things
Oil giant Shell posts highest-ever annual profit of $40 billion
This while millions of people have to think very seriously about the choice between heating or eating. It truly is shameful
mejonaNO12 aka riskit
Well-known member
Isn't that like being really happy to tell everyone you only have 17 broken bones left to heal after your car crash in October which left you with 45 newly broken bones?
Other good news seldom covered, how many know this?:
1. Wholesale gas prices have plummeted.
2. The cost to the UK exchequer of the Bulb Energy company collapse has fallen from £6.5b to £260m.
https://www.cityam.com/bulb-takeover-will-only-cost-taxpayer-260m-says-octopus-energy-pic/
Its not really helping much then, the whole country is on strike due to the cost of existing (yes this is simplistic), can't see this making this better.
It will be interesting to see the mortgage default rate / repossessions. Maybe it will help with house prices as the poor buggers that lose their houses will increase the supply. Probably not as the wealthy will just snap up the repossession and rent them back to the same people.
pb21
Well-known member
- Apr 23, 2010
- 6,338
Yes, he didn't say no more increases, but the tone of what he said, without saying it, was that further raises will be short/minimal; the markets pumping as he was talking reflected that.
southstandandy
WEST STAND ANDY
- Jul 9, 2003
- 5,662
It's amazing how 4% now seems high. Sadly I'm old enough to have had mortgage in the 80's when I had a 5 year deal at 8% and inflation was poor then too. How times change.
That really happened in the early/mid 90's in huge numbers. You might recall?