Alexandole Boris de Pfeffel Johnson

Gaudion M said:
There are some serious questions that need asking about why interest rates are not fixed.

We heard for a long time how when rates were low it was a great time to borrow money. Well that was the time to borrow long term on fixed rates. Why did the treasury massively underestimate the increase in costs? I have no idea what rules there are around interest rate management in government but I work in a bank and when this sort of thing happens its generally because someone fucked up and was not following policy.
Click to expand...
They also failed to take out insurance against the rate rise, a mistake that has likely cost the country 11 billion.
 
Gaudion M said:
There are some serious questions that need asking about why interest rates are not fixed.

We heard for a long time how when rates were low it was a great time to borrow money. Well that was the time to borrow long term on fixed rates. Why did the treasury massively underestimate the increase in costs? I have no idea what rules there are around interest rate management in government but I work in a bank and when this sort of thing happens its generally because someone fucked up and was not following policy.
Click to expand...
Isn’t there a danger of lots of people going bankrupt if interest rates rise?

What percentage of the UK live their lives on finance?
 
Alan Harper's Tash said:
Isn’t there a danger of lots of people going bankrupt if interest rates rise?

What percentage of the UK live their lives on finance?
Click to expand...
Yes - but my point is around government finances. They can borrow any way they want. You would assume that there is some policy around how much is fixed and given rates have been very low it would be sensible to fix a big chunk long term.

There was a huge jump in the last set of figures, much higher than was expected - suggesting they failed to fix when they could.
 
You must log in or register to reply here.
Unread Posts

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
✖
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.