Raising Interest Rates - Bank Of England

[Beach Hut]

I accept the fact many of us have had the significant good benefit of low interest rates reducing mortgage payments however the idea to raise them now with spiralling inflation and still a poor economy is total madness IMHO.

If interest rates go up this will eat into leisure income therefore reduce spending which will prolong the recession.

Total madness in my view as we can live with this spike in inflation which will eventually go down as some of us will remember interest rates at 15% and inflation at 10% which were awful.

Also raising interest rates will not help to reduce the long term unemployment problem either.

 

[Giraffe]

And for that reason I don't think you will see more than a token 0.25% rise this year.

 

[8ace]

I wish they would raise them, I'm getting f*** all interest on my savings.

 

[beorhthelm]

BoE will only raise rates a little and mainly just to show it is in control. they will be pointless though, the main sources of price inflation stem from commodity prices, so interest rate hikes will be like putting out a burning hay barn with a bucket.

inflation will have to be controlled by governments fiscal policy, no more taxes especially not on fuel.

 

[Beach Hut]

I wish they would raise them, I'm getting f*** all interest on my savings.

Same here however off-set against low mortgage - you can't have your cake and eat it.

It works both ways and I suspect there are more mortgage payers than savers.

 

[8ace]

Same here however off-set against low mortgage - you can't have your cake and eat it.

It works both ways and I suspect there are more mortgage payers than savers.

I don't have a mortgage though mate. Do you want me to text you the score on Saturday?

 

[Beach Hut]

I don't have a mortgage though mate. Do you want me to text you the score on Saturday?

I can understand the issue however there are a lot of mortgage payers and raising interest rates will cause bigger issues in reduced spending.

And yes please do as I am in flight for the duration of the game and quite a bit more !

 

[RexCathedra]

The Cameron/Clegg austerity plan isn't choking off recovery fast enough.
Now the BoE has to do its part.

Everyone has to do their bit, however small. The road to Wigan Pier begins with but a single step.

 

[Chicken Runner61]

Raising interest rates won't stop Oil, Cotton, Cocao, Copper, Wheat, Rice, etc going up in this country.

Its those commodities that put inflation up and the BOE and government are just using interest rates as a smokescreen to pretend that raising them will bring inflation down while they pray desperately for a miracle.

Its a bit like todays attack on benefits. The smokescreen is that they are ONLY going after the people who can get more on benefits and that those that really need it won't be affected.

There is no way they can cut the benefit system without hurting some people. And unless they can get/force about 500,000 people to all take employment in jobs they would not normally lower themselves to do they ain't going to cut the benefit bill.

This country needs real well paid jobs in manufacturing and industry rather than the boring low pay service industry we have sold our soul to for the past 25 years.