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Interest Rates To Rise Again.
This Govt will hike up interest rates again this week for the 14th consecutive time.
The Tories are saying ,"To get inflation under control we have to make the public ...Poor..They have to have less money or it will not work...........But it won't affect MPs of course.
The Tories are saying ,"To get inflation under control we have to make the public ...Poor..They have to have less money or it will not work...........But it won't affect MPs of course.
Answers
It’s interesting how many ABers don’t seem to understand how this interest rate rising, effects the economy. I first came across this while still living at home with my parents (in a mortgage free house). A colleague (who had recently bought a flat) was complaining bitterly that the government was severely limiting his spending money (to control...
11:42 Thu 03rd Aug 2023
I love the detailed answers to question posts that have been deleted. It makes sane men look like deluded crayzies.
Got to hand it to gulliver.... posts another invalid question/statement and still gets 30+ replies.
"there are 14 rises of interest rates" is a verifiable future fact innit
that is by 5 pm if there is a rate rise today, it will be the 14th - not true now but conditionally true at 1700
you better get used to future facts - they figure largely in the McGhee Brick dust case
montechristo ! - Jesus some Latin, so this post is Dooooomed!
Got to hand it to gulliver.... posts another invalid question/statement and still gets 30+ replies.
"there are 14 rises of interest rates" is a verifiable future fact innit
that is by 5 pm if there is a rate rise today, it will be the 14th - not true now but conditionally true at 1700
you better get used to future facts - they figure largely in the McGhee Brick dust case
montechristo ! - Jesus some Latin, so this post is Dooooomed!
"what we are hearing from most of the economists is that there will be a 0.25% to bring it to 5.25%"
Loolie Christien ch 231 - says "it is farry beeg and farry leedol at the same time" - hmm should be a mod on AB then
and 12 00 - Gromit wins
as Bobo from Cymru says 1159- "we have had a morning of undiluted crap from the usual suspect - one Gromit - aided and abetted by the other usual suspects, ne of whom clearly should be certified"
and then 1200
oops Gromit was right - no sozza of course - and yes the third is STILL certifiable....
normal day on AB then
Loolie Christien ch 231 - says "it is farry beeg and farry leedol at the same time" - hmm should be a mod on AB then
and 12 00 - Gromit wins
as Bobo from Cymru says 1159- "we have had a morning of undiluted crap from the usual suspect - one Gromit - aided and abetted by the other usual suspects, ne of whom clearly should be certified"
and then 1200
oops Gromit was right - no sozza of course - and yes the third is STILL certifiable....
normal day on AB then
sozza bobo
your writing is as er beautiful as Naomi's
Missed the subject - BoE / Gubmint
and concentrated on 13th 14th 15th
and of course McGee
https:/
wh er I found mmore of interest
your writing is as er beautiful as Naomi's
Missed the subject - BoE / Gubmint
and concentrated on 13th 14th 15th
and of course McGee
https:/
wh er I found mmore of interest
It’s interesting how many ABers don’t seem to understand how this interest rate rising, effects the economy.
I first came across this while still living at home with my parents (in a mortgage free house). A colleague (who had recently bought a flat) was complaining bitterly that the government was severely limiting his spending money (to control inflation) by raising bank rates – which fed through to his mortgage. So all those with a mortgage were suffering (as now) but the effects on others was minimal.
Perhaps the Tories are hoping that those like me who already own their home will vote for them – but the problem for the government is that many of the inflationary forces (on the UK economy) are not a result of an overheating economy (where there is too much money around), but other world effects such as Brexit, the war in Ukraine etc.
So increasing the bank rate (limiting the money supply in the economy) will have less of the desired effect than it otherwise would – given this, more rises in the bank rate may be yet to come.
I first came across this while still living at home with my parents (in a mortgage free house). A colleague (who had recently bought a flat) was complaining bitterly that the government was severely limiting his spending money (to control inflation) by raising bank rates – which fed through to his mortgage. So all those with a mortgage were suffering (as now) but the effects on others was minimal.
Perhaps the Tories are hoping that those like me who already own their home will vote for them – but the problem for the government is that many of the inflationary forces (on the UK economy) are not a result of an overheating economy (where there is too much money around), but other world effects such as Brexit, the war in Ukraine etc.
So increasing the bank rate (limiting the money supply in the economy) will have less of the desired effect than it otherwise would – given this, more rises in the bank rate may be yet to come.
//It’s interesting how many ABers don’t seem to understand how this interest rate rising, effects the economy.//
You seem overly fond of pointing out what ABers don't understand. I think there are one or two holes in your understanding which I shall try to fill.
//...but the problem for the government is that many of the inflationary forces (on the UK economy) are not a result of an overheating economy (where there is too much money around),//
There are two main causes to the current high rate of inflation. The war in Ukraine has put stresses on global supply chains and in particular energy supplies (and hence their costs). Secondly (and just as important if not more so) is that the government printed some £400bn of worthless money during the pandemic and a similar amount following the global financial crisis. Whether this was the correct approach to cope with these crises is outside the scope of this question, but as any schoolboy or schoolgirl knows, if you print worthless money (i.e. that which has been injected into circulation without a concomitant increase in productivity) the value of all the "real" money is reduced. £400bn is about 15% of the UK's GDP and if that amount of money is released into the economy it is bound to have a profound effect. The BofE insists that "Quantitative Easing" (as it likes to call its money printing exercise - it sounds better) keeps interest rates low (which it does) and so helps control inflation (which it certainly and evidently doesn't).
//So all those with a mortgage were suffering (as now) but the effects on others was minimal.//
That's not quite correct. The effect on businesses who rely on borrowed money to grow (and in some cases to survive) is significant. However, you should look at the converse as well. Interest rates are just returning to realistic levels. For fifteen years they have been artificially depressed (mainly by government policies in response to crises, as above). This means that individuals and businesses have been borrowing money at virtually no cost. This (together with over-population) has caused rampant property price increases and to people living beyond their means. But all during this time, savers (who outnumber borrowers by about seven to one) have seen their returns decimated. They have effectively been lending money to the banks for virtually nothing. Strange as it may seem, savers spend money in the economy as well, and since there are seven times as many of them, the effect that low interest rates have on the nation's overall spending is even more profound than it is on the relatively few mortgage holders.
You seem overly fond of pointing out what ABers don't understand. I think there are one or two holes in your understanding which I shall try to fill.
//...but the problem for the government is that many of the inflationary forces (on the UK economy) are not a result of an overheating economy (where there is too much money around),//
There are two main causes to the current high rate of inflation. The war in Ukraine has put stresses on global supply chains and in particular energy supplies (and hence their costs). Secondly (and just as important if not more so) is that the government printed some £400bn of worthless money during the pandemic and a similar amount following the global financial crisis. Whether this was the correct approach to cope with these crises is outside the scope of this question, but as any schoolboy or schoolgirl knows, if you print worthless money (i.e. that which has been injected into circulation without a concomitant increase in productivity) the value of all the "real" money is reduced. £400bn is about 15% of the UK's GDP and if that amount of money is released into the economy it is bound to have a profound effect. The BofE insists that "Quantitative Easing" (as it likes to call its money printing exercise - it sounds better) keeps interest rates low (which it does) and so helps control inflation (which it certainly and evidently doesn't).
//So all those with a mortgage were suffering (as now) but the effects on others was minimal.//
That's not quite correct. The effect on businesses who rely on borrowed money to grow (and in some cases to survive) is significant. However, you should look at the converse as well. Interest rates are just returning to realistic levels. For fifteen years they have been artificially depressed (mainly by government policies in response to crises, as above). This means that individuals and businesses have been borrowing money at virtually no cost. This (together with over-population) has caused rampant property price increases and to people living beyond their means. But all during this time, savers (who outnumber borrowers by about seven to one) have seen their returns decimated. They have effectively been lending money to the banks for virtually nothing. Strange as it may seem, savers spend money in the economy as well, and since there are seven times as many of them, the effect that low interest rates have on the nation's overall spending is even more profound than it is on the relatively few mortgage holders.
/ "we have had a morning of undiluted crap from the usual suspect - one Gromit” //
oh that was me: I think: apologies
I think that was an axiom that I intended to lead to a contradiction
( unadulterated crap that interest rates wdnt rise but then they did ! (contradiction)
and that disproves the axiom.
also if attributed to the wrong author ( such wisdom that is) it is because I regard at Hymie Gulliver and Gromit as one
They post one thing and it is followed by 20 posts of abuse.
and often turn out to be right
sozza - dubbl sozza
oh that was me: I think: apologies
I think that was an axiom that I intended to lead to a contradiction
( unadulterated crap that interest rates wdnt rise but then they did ! (contradiction)
and that disproves the axiom.
also if attributed to the wrong author ( such wisdom that is) it is because I regard at Hymie Gulliver and Gromit as one
They post one thing and it is followed by 20 posts of abuse.
and often turn out to be right
sozza - dubbl sozza
or irony
it was unadulterated crap during the morning
and absolutely correct in the afternoon
( influenced I blush to say, as classical allusions are NOT fave of the moment) by Cassandy in Aeschylus Agamemnon
cassandy you er recollect made prediction that no one understtod
( "io io poor child, I am not schooled in prophecy" - the chorus
just about in reply to whatever Cassandy says)
it was unadulterated crap during the morning
and absolutely correct in the afternoon
( influenced I blush to say, as classical allusions are NOT fave of the moment) by Cassandy in Aeschylus Agamemnon
cassandy you er recollect made prediction that no one understtod
( "io io poor child, I am not schooled in prophecy" - the chorus
just about in reply to whatever Cassandy says)
"Got to hand it to gulliver.... posts another invalid question/statement and still gets 30+ replies."
thats what trolls do when you feed them...
And unusually i have looked back on a previous post i made and I see the OP troll hasnt answered my question that only has one of two answers Y or N ...theres a surprise said nobody ever..
yet still he post his diversionary garbage
thats what trolls do when you feed them...
And unusually i have looked back on a previous post i made and I see the OP troll hasnt answered my question that only has one of two answers Y or N ...theres a surprise said nobody ever..
yet still he post his diversionary garbage
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