Interest Rate Up
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Interest Rate Up
Bank of England raises base rate from .75 to 1%.( bbc)
No huge surprise, but how high will they go?
No huge surprise, but how high will they go?
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Re: Interest Rate Up
The EU were hinting at twice this year for those outside of the UK .
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Re: Interest Rate Up
Apologies for being thick here but won't this make the cost of living even higher for anyone on tracker mortgages (like me)? Ours has gone up three times in the last few months. Need to remortgage, sharpish.
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Re: Interest Rate Up
Yes, this will make the cost of living higher for everybody.
It's a combination of factors but the war in Ukraine is only one of those.
The chief factor is the entire western world + China effectively shutting down most of the world economy for ~18 months, coupled with hundreds of millions of people in the west being "paid" to sit on their bottoms during the restriction periods.
Who do you think paid for it all? Where do you think the money appeared from?
We're only just starting to pay the price of the lockdown restrictions.
It's a combination of factors but the war in Ukraine is only one of those.
The chief factor is the entire western world + China effectively shutting down most of the world economy for ~18 months, coupled with hundreds of millions of people in the west being "paid" to sit on their bottoms during the restriction periods.
Who do you think paid for it all? Where do you think the money appeared from?
We're only just starting to pay the price of the lockdown restrictions.
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Re: Interest Rate Up
Bank of England forecast really bad - 10% inflation and a real risk of recession
I reckon that is going to require a lot of "Three Lions getting cancelled" stories to try to bury that
I reckon that is going to require a lot of "Three Lions getting cancelled" stories to try to bury that
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Re: Interest Rate Up
It’s unlikely to keep going up for now. Economic indicators are suggesting a slowdown in the UK and a potential recession. The Bank of England have said they are monitoring this closely and won’t keep raising rates if that’s the case.
Re: Interest Rate Up
Thought this was a thread about ticket sales for Villa and Newcastle .
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Re: Interest Rate Up
Meanwhile, the profits the energy and oil companies are making have tripled.
Time for another rise in national insurance.
Time for another rise in national insurance.
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Re: Interest Rate Up
I think we're in for a period of sustained inflation and high interest rates.
You don't get to print money / debase your currency without it eventually come back to bite you.
This economic reality saying hello to us.
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Re: Interest Rate Up
Several factors are at play obviously, but why does the IMF think we'll have the worst inflation shock in the G7? What exactly is it about the UK that makes us uniquely ill suited to deal with these global shocks?Rowls wrote: ↑Thu May 05, 2022 12:35 pmYes, this will make the cost of living higher for everybody.
It's a combination of factors but the war in Ukraine is only one of those.
The chief factor is the entire western world + China effectively shutting down most of the world economy for ~18 months, coupled with hundreds of millions of people in the west being "paid" to sit on their bottoms during the restriction periods.
Who do you think paid for it all? Where do you think the money appeared from?
We're only just starting to pay the price of the lockdown restrictions.
https://www.bloombergquint.com/global-e ... -imf-warns
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Re: Interest Rate Up
Maybe it's because we had the widest and "most generous" furlough scheme?JohnMcGreal wrote: ↑Thu May 05, 2022 12:58 pmSeveral factors are at play obviously, but why does the IMF think we'll have the worst inflation shock in the G7? What exactly is it about the UK that makes us uniquely ill suited to deal with these global shocks?
https://www.bloombergquint.com/global-e ... -imf-warns
Yeah, it was fun and games being "paid" to sit on our bottoms and not work but who paid for this? Where did the money come from?
Who knows, eh? Economic predictions are only as good as the organisations or people making them.
Predictions are wispy schimera. Economic reality is what we're dealing with, not predicitions.
Re: Interest Rate Up
Is it that we have particularly high borrowing rates? In general, countries with massive borrowing problems need high inflation with low interest to reduce the real value of their debt. They can't afford to pay the interest on the debt if rates are high, but if we don't get lots of inflation they won't be able to repay any debt. Unsupportable debt will pretty much always lead to high inflation, though normally interest rates go up with it.
If you work or worked for the government and have a final salary pension, or a government wage, you are inflation-proofed by virtue of your job. It's mainly the private sector workers who will suffer.
If you work or worked for the government and have a final salary pension, or a government wage, you are inflation-proofed by virtue of your job. It's mainly the private sector workers who will suffer.
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Re: Interest Rate Up
A few people quoting me and replying but nobody yet answering the questions.
It's open to everybody. If you think you know the answer, let us know.
Who paid for all those furlough schemes and covid loans? Where did the money appear from?
It's open to everybody. If you think you know the answer, let us know.
Who paid for all those furlough schemes and covid loans? Where did the money appear from?
Re: Interest Rate Up
There was me thinking that many connected to tge sleazy Gov have done very well and took lots of our money!Rowls wrote: ↑Thu May 05, 2022 12:35 pmYes, this will make the cost of living higher for everybody.
It's a combination of factors but the war in Ukraine is only one of those.
The chief factor is the entire western world + China effectively shutting down most of the world economy for ~18 months, coupled with hundreds of millions of people in the west being "paid" to sit on their bottoms during the restriction periods.
Who do you think paid for it all? Where do you think the money appeared from?
We're only just starting to pay the price of the lockdown restrictions.
I see Baroness Mone made multi millions for a couple of phone calls. PPE that turned out to be not fit for purpose. She is just one of the trough guzzlers who fleeced us.
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Re: Interest Rate Up
Early days, but Brexit, Covid and this war......
Imo we have done well to get to this point with IR only1%. As I've mentioned before, it was 15% when I bought my house. The last 10 to 15years have been one of the most stable in history. The Thatcher boom and bust years were terrible. Trying to budget when you didn't know if we were coming or going was hard.
One of the best things Gordon Brown did, was letting the BoE set interest rates, rather than the Chancellor of the Exchequer.
Imo we have done well to get to this point with IR only1%. As I've mentioned before, it was 15% when I bought my house. The last 10 to 15years have been one of the most stable in history. The Thatcher boom and bust years were terrible. Trying to budget when you didn't know if we were coming or going was hard.
One of the best things Gordon Brown did, was letting the BoE set interest rates, rather than the Chancellor of the Exchequer.
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Re: Interest Rate Up
Fair enough. Forget the predictions and look at the economic reality.Rowls wrote: ↑Thu May 05, 2022 1:05 pmMaybe it's because we had the widest and "most generous" furlough scheme?
Yeah, it was fun and games being "paid" to sit on our bottoms and not work but who paid for this? Where did the money come from?
Who knows, eh? Economic predictions are only as good as the organisations or people making them.
Predictions are wispy schimera. Economic reality is what we're dealing with, not predicitions.
What happens to a country's economy when it decides to erect trade and regulatory barriers between itself and its closest and largest market? Does that have a positive or negative effect on GDP? Basic stuff. Should be easy to answer.
How much tax does the treasury miss out on when you deliberately hobble your exporting businesses?
Does deliberately reducing the amount of labour have an inflationary or deflationary effect on your economy?
Why does the OBR think that the pandemic will only be about 50% as damaging as the actions taken above?
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Re: Interest Rate Up
Oh, economic reality is suddenly important again?
Good to know
Good to know
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Re: Interest Rate Up
2 Simple questions asked
0 Answers received so far
0 Answers received so far
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Re: Interest Rate Up
Which tory party leaflet did you get that ******** from?
My grand daughter, here in Ireland, got €350/week for the duration whilst she only had a weekend job. Whereas my daughter, in the UK, was made redundant the week before furloughing kicked in and got next to sweet FA for the 8 months until she found work.
Re: Interest Rate Up
The real reason, and what the government and media don't mention, is the extra money printed during covid. Approximately 10'000 per adult in the UK. But of course its in the hands of the rich, and the price of everything goes up for all of us. We have a chancellor that is married to a billionaires daughter. Don't ever believe those who run the country have our interests at heart.
Last edited by groove on Thu May 05, 2022 1:56 pm, edited 1 time in total.
Re: Interest Rate Up
A few years ago I was getting 6% on savings, for quite a few years now it's been near 0%....i doubt it will go back to 6%...or the 14% it was in the 80s.... Not everybody benefits from low interest rates.
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Re: Interest Rate Up
Indeed it is.
And the economic reality right now is that we're going through the biggest shift in wealth towards the already rich in our history.
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Re: Interest Rate Up
You ask "Why does the IMF think we'll have the worst inflation shock in the G7." Well the obvious answer is that we have the same inflation problems as the rest of the world, but on top of that we had Brexit. That means that all goods coming from the EU are charged VAT, which in turn puts the prices up in the shops on top of underlying inflation. This is a massive amount of VAT being accrued by the government and instead of using it to help fight the cost of living crisis, they are squirrelling it away in their coffers to use just before the next election, to bribe the electorate with an 1p income tax cut.JohnMcGreal wrote: ↑Thu May 05, 2022 12:58 pmSeveral factors are at play obviously, but why does the IMF think we'll have the worst inflation shock in the G7? What exactly is it about the UK that makes us uniquely ill suited to deal with these global shocks?
https://www.bloombergquint.com/global-e ... -imf-warns
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Re: Interest Rate Up
Customs duties rather than VAT but the point stands.Gordaleman wrote: ↑Thu May 05, 2022 2:03 pmYou ask "Why does the IMF think we'll have the worst inflation shock in the G7." Well the obvious answer is that we have the same inflation problems as the rest of the world, but on top of that we had Brexit. That means that all goods coming from the EU are charged VAT, which in turn puts the prices up in the shops on top of underlying inflation. This is a massive amount of VAT being accrued by the government and instead of using it to help fight the cost of living crisis, they are squirrelling it away in their coffers to use just before the next election, to bribe the electorate with an 1p income tax cut.
The bigger cause of rising prices on imports though is the import process itself. What was frictionless and simple is now hugely convoluted and time consuming.
Re: Interest Rate Up
It's not a cost of living crisis it's an inequality crisis. Check the rich list and see how much money the elites earned during covid.
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Re: Interest Rate Up
Precisely. So much for the Brexit dividend. Boris saw a chance for personal glory and jumped in with both feet, knowing he wouldn't suffer like everyone else when it all went ti*s up.claret2018 wrote: ↑Thu May 05, 2022 2:18 pmCustoms duties rather than VAT but the point stands.
The bigger cause of rising prices on imports though is the import process itself. What was frictionless and simple is now hugely convoluted and time consuming.
Re: Interest Rate Up
You just need to claim its world beating to really get the message out there.Rowls wrote: ↑Thu May 05, 2022 1:05 pmMaybe it's because we had the widest and "most generous" furlough scheme?
Yeah, it was fun and games being "paid" to sit on our bottoms and not work but who paid for this? Where did the money come from?
Who knows, eh? Economic predictions are only as good as the organisations or people making them.
Predictions are wispy schimera. Economic reality is what we're dealing with, not predicitions.
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Re: Interest Rate Up
Those much promised uplands are getting sunnier and sunnier.claret2018 wrote: ↑Thu May 05, 2022 2:18 pmCustoms duties rather than VAT but the point stands.
The bigger cause of rising prices on imports though is the import process itself. What was frictionless and simple is now hugely convoluted and time consuming.
Re: Interest Rate Up
If imports from the EU are as awkward as all that, then perhaps they should look at importing from say the USA which is presumably a much simpler process? One company in particular that I used to know, in the EU days imported and exported from/to the EU and to the rest of the world, and there was little difference in paperwork and difficulty.claret2018 wrote: ↑Thu May 05, 2022 2:18 pmCustoms duties rather than VAT but the point stands.
The bigger cause of rising prices on imports though is the import process itself. What was frictionless and simple is now hugely convoluted and time consuming.
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Re: Interest Rate Up
I don't get my criticisms of government policies from party leaflets. They're much likelier to say the furlough scheme was a great success. And voters who benefited from it (short term, obvs) are actually likely to agree with them.Tricky Trevor wrote: ↑Thu May 05, 2022 1:50 pmWhich tory party leaflet did you get that ******** from?
My grand daughter, here in Ireland, got €350/week for the duration whilst she only had a weekend job. Whereas my daughter, in the UK, was made redundant the week before furloughing kicked in and got next to sweet FA for the 8 months until she found work.
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Re: Interest Rate Up
We're all getting richer. The poor are getting much richer. They're no longer even "poor" by old standards.
For many, like yourself for example, it's all relative.
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Re: Interest Rate Up
As high as possible - to reward saversElectroClaret wrote: ↑Thu May 05, 2022 12:16 pmBank of England raises base rate from .75 to 1%.( bbc)
No huge surprise, but how high will they go?
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Re: Interest Rate Up
Which has to be paid back
Course, we should really make those that can afford to pay, pay
But I guess it would just be easier to close some more public services and blame those poor b**tards trying to cross the channel
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Re: Interest Rate Up
Double edged sword for some of us older pe people with savings, however with inflation the bit more interest you get is hammered by inflation and it upsets seeing your kids have to pay more for their mortgages.
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Re: Interest Rate Up
This will end up being treated like a war debt which we will be paying for the rest of my life and my daughters life (she’s nearly 2). I wouldn’t be surprised if they introduced a covid tax. The furlough money didn’t grow on trees, and needs to be paid back.
Re: Interest Rate Up
If I understand things roughly the Government borrows for typically something like ten years with interest rates fixed using rates at the time of the loan (which of course have been low) then has to pay it back at the end of those ten years. To do this they get new loans for perhaps a further ten years, but these will be with paying interest at the rates in ten years time, which may will be higher, perhaps even considerably higher. There is a constant cycle of this going on.Lancasterclaret wrote: ↑Thu May 05, 2022 3:20 pmWhich has to be paid back
Course, we should really make those that can afford to pay, pay
But I guess it would just be easier to close some more public services and blame those poor b**tards trying to cross the channel
In other words it's loading debt onto future tax payers.
Re: Interest Rate Up
This increase will also effect the Burnley loan - LIBOR + 8% I read.
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Re: Interest Rate Up
YepHipper wrote: ↑Thu May 05, 2022 3:43 pmIf I understand things roughly the Government borrows for typically something like ten years with interest rates fixed using rates at the time of the loan (which of course have been low) then has to pay it back at the end of those ten years. To do this they get new loans for perhaps a further ten years, but these will be with paying interest at the rates in ten years time, which may will be higher, perhaps even considerably higher. There is a constant cycle of this going on.
In other words it's loading debt onto future tax payers.
Course, just what the young need right now is the knowledge that when they are older they will have to pay even more
Some action right now on those that can afford to pay would be both justified and probably necessary
IMHO of course!
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Re: Interest Rate Up
YepHipper wrote: ↑Thu May 05, 2022 3:43 pmIf I understand things roughly the Government borrows for typically something like ten years with interest rates fixed using rates at the time of the loan (which of course have been low) then has to pay it back at the end of those ten years. To do this they get new loans for perhaps a further ten years, but these will be with paying interest at the rates in ten years time, which may will be higher, perhaps even considerably higher. There is a constant cycle of this going on.
In other words it's loading debt onto future tax payers.
Course, just what the young need right now is the knowledge that when they are older they will have to pay even more
Some action right now on those that can afford to pay would be both justified and probably necessary
IMHO of course!
Re: Interest Rate Up
It's admirable that you're still trying to push this despite a lot of recent evidence to the contrary.dsr wrote: ↑Thu May 05, 2022 2:52 pmIf imports from the EU are as awkward as all that, then perhaps they should look at importing from say the USA which is presumably a much simpler process? One company in particular that I used to know, in the EU days imported and exported from/to the EU and to the rest of the world, and there was little difference in paperwork and difficulty.
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Re: Interest Rate Up
Cant help but think Alan Pace and ALK are at fault for this
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Re: Interest Rate Up
The Government issues bonds. Investors buy them at a guaranteed rate of interest and a guaranteed future value. It’s not “printing money” but is a form of borrowing as the Government pays those interest amounts, and will at some point have to buy the bond back. All explained on here https://en.m.wikipedia.org/wiki/Gilt-edged_securities if you’re really interested. Which most people aren’t as it’s not a 60 second soundbite.
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Re: Interest Rate Up
Many tricks and many fancy names but it's printing money in all but name.claret wizard wrote: ↑Thu May 05, 2022 6:58 pmThe Government issues bonds. Investors buy them at a guaranteed rate of interest and a guaranteed future value. It’s not “printing money” but is a form of borrowing as the Government pays those interest amounts, and will at some point have to buy the bond back. All explained on here https://en.m.wikipedia.org/wiki/Gilt-edged_securities if you’re really interested. Which most people aren’t as it’s not a 60 second soundbite.