But it is working, I don’t think they’ll raise it next time. They want people to stop spending as much then companies will have reduced demand and thus won’t be able to keep increasing prices. Wholesale and retain energy prices have been falling and still prices rose, that’s down to an excess of demand and profiteering. Once people lower their spending, prices will stagnate and/or drop.They keep putting up interest rates and it appears to be a useless tactic, what will they try next if it keeps failing to work?
It will work eventually, at the extreme people will be able to afford nothing, but for now it just depends on how much it fucks the economy and at what point people take to the streets with pitchforks.They keep putting up interest rates and it appears to be a useless tactic, what will they try next if it keeps failing to work?
The problem is that you think debt at 5.75% is expensive when it’s actually historically very cheap. You thought sub 2% interest would last forever (rather than it being the absolute exception that it was).Seems to be an intentional delay in rippling out to interest rates, one way at least. Fast to rise but extra cautious to hold or reduce.
It's got to the point now where we are facing having to use our savings, daughter's eduction or wedding fund basically, to pay off some of our tracker mortgage because theoretically we save money by doing that. It's not loads but it may help. Gone from 1.25 to 5.75 and despite using a third of the energy we used last year, scrapping Netflix, Prime etc, one night out a quarter, kids dropping extra clubs after school ,it's not making any difference as the rates just keep going up. All this extra interest being paid and not going to anyone who will do any good with it.
The inevitable recession will soon drive down inflation. But it will also devastate the already struggling economy.They keep putting up interest rates and it appears to be a useless tactic, what will they try next if it keeps failing to work?
Spoken like a true FOC ;)The problem is that you think debt at 5.75% is expensive when it’s actually historically very cheap. You thought sub 2% interest would last forever (rather than it being the absolute exception that it was).
Historically cheap compared to the 80s and 90s, ie a generation ago. Our current economy has been built this generation.The problem is that you think debt at 5.75% is expensive when it’s actually historically very cheap. You thought sub 2% interest would last forever (rather than it being the absolute exception that it was).
I remember "Black Wednesday" in the early nineties when interest rates hit around 15%. Banks and Building Societies were repossessing houses on an industrial scale. The mortgage lenders were desperate to recover money and sanctioned sales by estate agents at well below the property's real worth. I knew of two local estate agents, acting for the mortgage lenders, who would contact an "associate" third party, arrange for them to buy cheaply and then either sell on for a handsome profit or create a portfolio of properties to rent. There is always someone who profits during tough times.The problem is that you think debt at 5.75% is expensive when it’s actually historically very cheap. You thought sub 2% interest would last forever (rather than it being the absolute exception that it was).
But it is working, I don’t think they’ll raise it next time.
Of course you don'tI don't believe in Father Christmas, or fairies.
The 15% interest rate was only done momentarily to protect Sterling same as selling all the foreign reserves in 1992, it was 15% for real though at the start of that decade.I remember "Black Wednesday" in the early nineties when interest rates hit around 15%. Banks and Building Societies were repossessing houses on an industrial scale. The mortgage lenders were desperate to recover money and sanctioned sales by estate agents at well below the property's real worth. I knew of two local estate agents, acting for the mortgage lenders, who would contact an "associate" third party, arrange for them to buy cheaply and then either sell on for a handsome profit or create a portfolio of properties to rent. There is always someone who profits during tough times.