Bank of England Base rate & other news

[dsc]

They are a bunch of out-of-touch c***s. Current inflation is caused by increased utility charges not by consumer spending. Curb the utilities and inflation will drop.

Ah but then share holders will be unhappy and everyone knows shareholders are better than poor people.

[NotAllThere]

Ah but then share holders will be unhappy and everyone knows shareholders are better than poor people.

If poor people don't like it, they should buy shares.

[sadkingbilly]

If poor people don't like it, they should buy shares.

https://www.youtube.com/watch?v=MqkT4B-9MGk

[Martin@AS Financial]

Bank Rate maintained at 4.25% - June 2025


Full report here:

https://www.bankofengland.co.uk/mone...2025/june-2025

[willendure]

Bank Rate maintained at 4.25% - June 2025


Full report here:

https://www.bankofengland.co.uk/mone...2025/june-2025

Just finished reading Ray Dalios new book "How Countries Go Broke". His proposal for fixing the debt is to cut govt spending by 3%, raise taxes by 3%, and cut interet rates by 1%. So to slightly tigthen fiscally and loosen monetary. This would curb government spending but permit private sector growth. If we started this gentle remedy now it would greatly reduce the chances of the epic crisis that is coming over the horizon.

[sadkingbilly]

Just finished reading Ray Dalios new book "How Countries Go Broke". His proposal for fixing the debt is to cut govt spending by 3%, raise taxes by 3%, and cut interet rates by 1%. So to slightly tigthen fiscally and loosen monetary. This would curb government spending but permit private sector growth. If we started this gentle remedy now it would greatly reduce the chances of the epic crisis that is coming over the horizon.

big archie dahn the pub says different.

[WTFH]

Just finished reading Ray Dalios new book "How Countries Go Broke". His proposal for fixing the debt is to cut govt spending by 3%, raise taxes by 3%, and cut interet rates by 1%. So to slightly tigthen fiscally and loosen monetary. This would curb government spending but permit private sector growth. If we started this gentle remedy now it would greatly reduce the chances of the epic crisis that is coming over the horizon.

That is a great theoretical solution, and works for people who rely on borrowing, but not for those in government.

If you read some of the threads on here where people are bleating about taxes potentially going up, for someone to say "let's raise taxes by 3%", there'd be a meltdown!
Equally, reducing interest rates encourages borrowing, and perhaps there needs to be a bit more fiscal responsibility in private borrowing (both business and personal), as the water companies have shown. Shifting debt without investing may satisfy short term shareholders, but it fails to provide adequate service to the customer.

[willendure]

That is a great theoretical solution, and works for people who rely on borrowing, but not for those in government.

If you read some of the threads on here where people are bleating about taxes potentially going up, for someone to say "let's raise taxes by 3%", there'd be a meltdown!
Equally, reducing interest rates encourages borrowing, and perhaps there needs to be a bit more fiscal responsibility in private borrowing (both business and personal), as the water companies have shown. Shifting debt without investing may satisfy short term shareholders, but it fails to provide adequate service to the customer.

The problem we face now is different to 2008 - back then there was an excess of private debt and insufficient bank reserves to cushion a shock. In the interim the debt has become public, threatening the value of our currency. So we have higher rates to defend the currency, which in themselves are inflationary, since all the interest is being paid out on the debt. The risk is an inflationary spiral.

The private sector needs to grow relative to government spending. I think the problem right now and the main reason the economy is so slow is that that private lending rates are too high to be attractive, so businesses are just waiting it out. Pretty normal for the end of the business cycle.

It might not suit government to be unable to spend spend spend, but if they don't do something then a huge existential crisis awaits the country. Sadly I think it is innevitable. I am mostly putting spare cash into assets that will do well under inflation.

[Martin@AS Financial]

UK inflation rises to highest since January 2024, renewing focus on BoE rate cuts


Full report (Reuters) here:

https://www.reuters.com/sustainabili...ne-2025-07-16/

The government set target is for the Bank Of England to keep inflation at 2% and it is currently sitting at 3.6% so it will be interesting to see if the predicted August base cut still happens.

[Martin@AS Financial]

Bank Rate reduced to 4% - August 2025

Full report here:

https://www.bankofengland.co.uk/mone...25/august-2025