Poor economic policy? Pumping the country full of cash during a pandemic? The world economy in general? Everyone has had it too good for too long? The boats? Brexit?
With falling gas and electricity prices and a slight slowing (slight) in food-price inflation driving the fall in headline inflation from 7.9% to 6.8%, it is difficult to see how the rise in interest rates is having any significant dampening effect on price rises. So-called core inflation is unchanged at a high 6.9% and services inflation ROSE from 7.2% to 7.4%. The Bank of England will again have to put interest rates up in September, unless it has access to more up-to-date data that somehow proves that pay rises that on average are higher than inflation are now slowing. But it will have the biggest challenge to explain why interest rate rises of more than 4% have so far had so little impact, despite causing huge pain to hundreds of thousands of mortgage holders and other borrowers. This is perhaps the biggest credibility test it has faced.
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I haven’t got time to reply to everyone so I’m just expanded on my thoughts here:
I don’t mean the Government need to do anything to tackle inflation as such - that is the BoEs job.
These interest rate rises are hurting a small minority of people (mortgage holders who’s fixed rates have come to an end).
Only 30% of households have a mortgage & of that 30% the majority won’t be on a variable rate or ending a fixed rate currently.
I meant that the Government need to support this small proportion of people who have seen their mortgage payments go from £900 to £1500 (generic example).
Whether that’s coming together with lenders to allow some flexibility or some sort of other scheme to support them.
Rate rises in theory are supposed to kill demand…
These rate rises are doing very little to most people (as they’re either mortgage free, on fixed rates or are renting).
But for those that it does effect it’s too much!
So here we’re not just killing demand, we’re going to be forcing a lot of these households into impossible situation of homelessness/default etc.
That’s not the right approach in my unqualified opinion!
Building the Team of the future. 💪
We are proud to unveil the next stage of the £70 million redevelopment of our Brackley home to create a state-of-the-art, sustainable F1 campus of the future. �Building the Team of the future. 💪
We are proud to unveil the next stage of the £70 million redevelopment of our Brackley home to create a state-of-the-art, sustainable F1 campus of the future. �Building the Team of the future. 💪
We are proud to unveil the next stage of the £70 million redevelopment of our Brackley home to create a state-of-the-art, sustainable F1 campus of the future. �Building the Team of the future. 💪
We are proud to unveil the next stage of the £70 million redevelopment of our Brackley home to create a state-of-the-art, sustainable F1 campus of the future. 😍
The Conservative Party is in such disarray. I’m by no means a fan but after they’ve lost the next general election, it might require David Cameron returning to frontline politics. At this point I think he’s their only hope of regaining some level of respectability.
A vote on adjourning the meeting to next week. 24 for (LD+Green, Lab), 22 against (Con+Ind) – with Labour having switched to backing an adjournment so more coalition discussions can take place. So a rainbow coalition remains a possibility for Cherwell. With that the meeting ends.