Interest rates will go up quicker than anyone expects, ex-BoE officials warn

Linton

Euphoria1z wrote: »

been meaning to ask for a long time, how does wage growth/wage inflation occur? who controls it? i.e i work in a call centre, and never really see more than 1-2% increase every 2nd yr or so. Is it up to my company to decide whether i get 1% increase? or the government?

Its an international plot by the Illuminati.

Sorry - yes your company decides on the basis of how much money it has available and how much it has to pay you to stop you moving elsewhere.

So one cause of inflation is if there is a shortage of the right sort of labour, companies continually out bid each other in order to keep their workers and put up their prices to pay for this.

Another is that if there is a shortage of something people want they will try to outbid each other to get it. So the price of that something, lets for the sake of argument call it houses, goes up. The people will then complain that prices are rising and want higher wages to pay for them.

Damaged

More waffle again from a has been. I am not saying he is incorrect, but tomorrow we'll get another 'expert' saying they wont go up for some time.

As the banks are returing to profit you'll see mortgage rate drop as the desire for more profit takes a hold, so while the base rate will go up, what you and I pay probably wont, and if they do, it will not cause the wide spread fall out that everyone is predicting, simply because the economy would have improved enough.