Some of you (especially those of you looking to find a mortgage ) will be wondering what are the prospects for interest rates this year?
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Some of you (especially those of you looking to find a mortgage ) will be wondering what are the prospects for interest rates this year?
While the Bank of England has made 'hawkish' noises about being prepared to raise rates if inflationary pressures worsen, some commentators see this a feint, intended to impact immediate market behaviour (it has) while expecting the imported downward pressure on economic activity will remove any inflation-based 'requirement' to raise rates.
#economics
h/t FT -
Some of you (especially those of you looking to find a mortgage ) will be wondering what are the prospects for interest rates this year?
While the Bank of England has made 'hawkish' noises about being prepared to raise rates if inflationary pressures worsen, some commentators see this a feint, intended to impact immediate market behaviour (it has) while expecting the imported downward pressure on economic activity will remove any inflation-based 'requirement' to raise rates.
#economics
h/t FTAnd just to emphasise why the BoE might not in the ned raise rates, the British Retail Consortium is reporting a major dip in consumer confidence.... and as consumer behaviour is a major driver of economic activity, that reduction in confidence may well contribute to a further slow-down in economic activity which (as we know) the BoE thinks is a price worth paying to 'squeeze inflation out of the system'...
UK consumer confidence has ‘collapsed’ during Iran war, retail industry says
BRC survey finds public even more pessimistic about finances as higher energy prices fuel inflation fears
the Guardian (www.theguardian.com)
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And just to emphasise why the BoE might not in the ned raise rates, the British Retail Consortium is reporting a major dip in consumer confidence.... and as consumer behaviour is a major driver of economic activity, that reduction in confidence may well contribute to a further slow-down in economic activity which (as we know) the BoE thinks is a price worth paying to 'squeeze inflation out of the system'...
UK consumer confidence has ‘collapsed’ during Iran war, retail industry says
BRC survey finds public even more pessimistic about finances as higher energy prices fuel inflation fears
the Guardian (www.theguardian.com)
@ChrisMayLA6 So to mitigate externally induced price increases (such as oil and gas and derived products), the BoE is seriously considering making mortgages more expensive? Do they think everyone is on 100k a year and can just absorb the increase?
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@ChrisMayLA6 So to mitigate externally induced price increases (such as oil and gas and derived products), the BoE is seriously considering making mortgages more expensive? Do they think everyone is on 100k a year and can just absorb the increase?
No they are seeking to punish workers who had the audacity to try and get pay rises to bring their (real) standard of loving back to pre-2008 levels - inflation, which must be squeezed out of the system, despite evidence to the contrary, for the BoE is always caused by greedy workers seeking wage rises
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No they are seeking to punish workers who had the audacity to try and get pay rises to bring their (real) standard of loving back to pre-2008 levels - inflation, which must be squeezed out of the system, despite evidence to the contrary, for the BoE is always caused by greedy workers seeking wage rises
@ChrisMayLA6 The only greedy workers I've seen getting inflation-busting pay rises in the UK are the MPs. Everybody else has been getting just enough to claw back a few years of inflation and price increases
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@ChrisMayLA6 The only greedy workers I've seen getting inflation-busting pay rises in the UK are the MPs. Everybody else has been getting just enough to claw back a few years of inflation and price increases
Indeed.... although the MPs are joined by top management across the country in getting above inflation wage rises
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And just to emphasise why the BoE might not in the ned raise rates, the British Retail Consortium is reporting a major dip in consumer confidence.... and as consumer behaviour is a major driver of economic activity, that reduction in confidence may well contribute to a further slow-down in economic activity which (as we know) the BoE thinks is a price worth paying to 'squeeze inflation out of the system'...
UK consumer confidence has ‘collapsed’ during Iran war, retail industry says
BRC survey finds public even more pessimistic about finances as higher energy prices fuel inflation fears
the Guardian (www.theguardian.com)
@ChrisMayLA6 love the clear breakdown of how consumer confidence connects to the bigger economic picture.
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