Bank of England Base rate & other news

[jamesbrown]

5%!

https://www.bankofengland.co.uk/mone...2023/june-2023

[Lance]

if we had built a lot more houses, 5% interest wouldn't be anywhere near as big a problem.

Scrap the green belt....

[jamesbrown]

if we had built a lot more houses, 5% interest wouldn't be anywhere near as big a problem.

Scrap the green belt....

Supply is not unimportant, but easy money is the elephant in the room (see worldwide prices) and UK gov't policies that ramp up demand have been at least as important in recent years. Anyway, massive crash incoming. Would've preferred a slow deflate, but a good old fashioned crash is probably in order and is already well underway elsewhere (e.g., NZ).

[JustKeepSwimming]

It's almost comical how one section of society just keeps getting punched in the face and told to suck it up for the greater good.

Interesting it was 7 - 2 for 5% - 4.5%. Looks like 2 aren't happy with BoE plan.

[dsc]

It's almost comical how one section of society just keeps getting punched in the face and told to suck it up for the greater good.

Interesting it was 7 - 2 for 5% - 4.5%. Looks like 2 aren't happy with BoE plan.

How else would you tame inflation? there's always a looser, be it people with mortgages, or the wealthy, or some other part of the society who "looses" because of something. There's no easy way to bring down inflation and I still think they are doing it way too slow, all you need now is for salaries to start going up and people being able to afford those interest rate increases and then we'll reach 10% inflation next year and stay there for the next 5 years.

[Protagoras]

It's almost comical how one section of society just keeps getting punched in the face and told to suck it up for the greater good.

When the interest rates were hugely suppressed post 2008, there was a section of society getting punched in the face and told to suck it up.

There was always going to be a payback following all those years of ridiculously low rates.

We just need the government to hold its nerve and not bail-out the over-indebted.
After all, they did nothing to help savers with lost income when the rates were suppressed.

[JustKeepSwimming]

How else would you tame inflation? there's always a looser, be it people with mortgages, or the wealthy, or some other part of the society who "looses" because of something. There's no easy way to bring down inflation and I still think they are doing it way too slow, all you need now is for salaries to start going up and people being able to afford those interest rate increases and then we'll reach 10% inflation next year and stay there for the next 5 years.

Taxation.

[jamesbrown]

Taxation.

A sockie tax with gricer supplement, for example.

[dsc]

Taxation.

Taxation of whom? the wealthy? businesses? Taxation typically increases costs along the chain as the extra cut is passed down, how is that supposed to slow down price increases?

[JustKeepSwimming]

When the interest rates were hugely suppressed post 2008, there was a section of society getting punched in the face and told to suck it up.

Would that be the section of society that has overseen the largest transfer of wealth to themselves from future generations? Those guys?

There was always going to be a payback following all those years of ridiculously low rates.

Yes, and the payback will be paid by the people who gained the least, or effectively suffered the most by putting the economy on life support in 2008.

We just need the government to hold its nerve and not bail-out the over-indebted.
After all, they did nothing to help savers with lost income when the rates were suppressed.

Well that's silly. Saving rates might have been low but asset prices ballooned.