Get Ready For Mortgage Rate Hikes.....

[ToraToraTora]

https://news.sky.com/story/millions-of-public-sector-workers-should-get-5-5-pay-rise-ministers-reportedly-told-13181805

Above inflation payrises = higher inflation = higher interest rates. I assume no one with a mortgage voted labour.

[pastafreak]

I was just reading yesterday that rates are expected to go down by the end of the year. My daughter's mortgage payments went up...a lot...under the conservatives. Time will tell...I hope you're wrong.

[ToraToraTora]

expected to go down? Perhaps but I suspect that will be reversed when inflation starts rising which it will if the government keeps dishing out inflation busting rises. Also this will encouraage more strike action and as is traditional with labour they'll hand out more dosh to them too. I'm so glad I don't have a mortgage.

[perseverer]

Presumably the pay review bodies' recommendations were in the pipeline, so if there had not been the early election (or if Tories had won,) the Tories would have been in the same position. Would they have acted on the recommendations?

[newmodarmy]

I'm relaxed about it, TTT. If an independent body is asked to recommend a figure then it's findings should be taken seriously. In this case 5.5% is in line with private sector rises and is less than teachers and nurses wanted to allow them to catch up for real term reductions ove rrecent years.  My guess is teh governemnt will wave through a few pay rises for other public sector workers too, including a big rise for junior doctors- it can blame the last government. teh last think Keir wants is a battle with Uniouns and the left of his party. It will cost billions overall but they'll find someone to pay for it, or borrow it and continue to blame the Tories for the high deficit

[newmodarmy]

I agree that unions in the public sector and train drivers will take the chance of a new, Labour, government to press for inflation busting and catch-up increases, so it may have to set up more review bodies to fudge things. 

[newmodarmy]

^ I meant to say train/tube drivers etc- meaning those not directly public sector but closely aligned