Finally, An Interest Rate Rise.

[youngmafbog]

First in 10 years although it is only returning to what it would have been had Carney not tried to badmouth Brexit with it.

Still must have a fair way to go to stem inflation, 1% by 2019 perhaps?


http://news.sky.com/story/live-boe-expected-to-raise-interest-rates-11109529

[mikey4444]

I have worked out that, roughly, that my small mortgage will rise by about £2 a month. I have very modest amounts in savings, so this increase of 0.25% really won't make any kind of appreciable difference to me.

But its indicative of how badly the economy is doing, that interest rates have to rise at all.

[david small]

When the interest rate dropped from .1/2% to .25% mortgage payments generally did not decrease. I bet this won’t occur with the increase. carney should never have dropped it as a brexit scare.

[youngmafbog]

//But its indicative of how badly the economy is doing, that interest rates have to rise at all.//
So as well as going to the Dianne Abbott school of Maths you also dont have any grip on economics?

[New Judge]

“But its indicative of how badly the economy is doing, that interest rates have to rise at all.”

Yes Mikey, back to your ‘O’ Level Economics class for you.

Interest rates were reduced to their ridiculously low levels precisely because the economy was in Carey Street. The thinking was that allowing people and businesses access to stupidly cheap money would stimulate the economy and provide growth. I won’t go into the shortcomings of that theory but that was the idea.

Today’s stupendous rise has been made not because the economy is doing badly but precisely the opposite:

“The panel which sets interest rates, called the Monetary Policy Committee (MPC), justified the rate increase by pointing to record-low unemployment, rising inflation and stronger global economic growth.

Mr Carney told the BBC that the Bank expected the UK economy to grow at about 1.7% for the next few years, which he said would require "about two more interest rate increases over the next three years".

[jourdain2]

Thank goodness that they have started to rise. I have been made so much poorer over the last 10 years. My savings interest (N.B. 'Savings' -i.e. I did without treats) used to buy me a cheap holiday - or most of it. Now I watch myself losing ground and facing a poorer old age - I may end up claiming off the state instead of being self-sufficient.
Half a percent is nothing. When we first bought, we were paying around 5% mortgage for a couple of months. We budgeted for it to go up to a max of 8%.....in reality it touched 18% within the year (oil crisis). I'd to choose between feeding self and kid, we genuinely had bare boards on the floor and could not afford a carpet or anything, really.
Stop whingeing and at least try to imagine what it was like as a young mum who had to do all washing by hand (including nappies). I'm talking the late 1970's here, not that long ago. Yes, we were really spoiled in those days.
Please may interest rates go up above inflation again and give us room for a few treats.