IR to rise again next month

Hereward

Pobby wrote:

Imho inflation is way ahead of published figures.Plasma screens and the like are not essential.Housing,gas,electricity,and for many petrol/diesil,are basic living requirements.Throw that into the equation and I think that the figures would be at 7% plus.

Clearly it is not in the govenments interest to raise rates by much.With so much borrowing over the last few years the results would be catastrophic.However we are in a global economy which will decide interesr rates at the end of the day.

The cost of a barrel of oil has been falling lately; it’s just a shame that most companies have to buy them nine months in advance. Most of the things that you have listed will be falling this time next year; although, in reality they will probable just stay the same (a fall in price in real terms).

If the government declared that inflation was the perceived 7% (I still wonder why people ignore that fact that their food shopping falls in price, or at least stay’s the same, as it make up a large proportion of household expenditure) then we would all be asking our employers for an 8% pay rise, which would trigger a large series of redundancies and push the economy into recession. If this actually happened, at least it would cure the inflation problem, unfortunately would cause a whole raft of others: I know which I prefer.

sm9ai

Hereward wrote:

(I still wonder why people ignore that fact that their food shopping falls in price, or at least stay’s the same, as it make up a large proportion of household expenditure)

What food do you buy, mine always seems to be going up in price.

Angela_D_3

Who got a payrise in line with infation, nobody I know public or private sector, the rates have to go up this month.

ManAtHome

FTSE 100 Directors pay rises were around 28% last year.

Minimum wage went up around 6% (??) to a background of tears and hand-wringing from.... the FTSE 100 directors!!

The rest of us were probably a bit less...

Gorgeous_George

All I know is that I've never had it so good.

The dark days of the Tory years when interest rates yo-yoed to suit their needs still haunt me.

IRs may go up - but there again they may come down. Alternatively, they could stay the same.

Am I bothered? Do I look bothered?



GG

whambamboo

Gorgeous_George wrote:

All I know is that I've never had it so good.

The dark days of the Tory years when interest rates yo-yoed to suit their needs still haunt me.

IRs may go up - but there again they may come down. Alternatively, they could stay the same.

Am I bothered? Do I look bothered?



GG

i thought you lefties didn't like the 'I'm alright Jack' attitude of the Tories.

Ah well, everyone's selfish in the end...

meanmachine_2

Gorgeous_George wrote:

All I know is that I've never had it so good.


GG

Good for you.

No need to go onto a moneysaving site then,

I agree, the boomers have never had it so good.

But don't think I'm subsidising your lifestyle by going into massive amounts of debt.

The boomers' party will end soon. 2010 is when the working population goes into serious meltdown. We'll see who's laughing then.

PoorDave

meanmachine wrote:

Good for you.

No need to go onto a moneysaving site then,

I agree, the boomers have never had it so good.

But don't think I'm subsidising your lifestyle by going into massive amounts of debt.

The boomers' party will end soon. 2010 is when the working population goes into serious meltdown. We'll see who's laughing then.

By then you'll probably have forgotten how to laugh!

Gorgeous_George

My point seems to have been missed.

I don't care what happens to interest rates because I do not have any control over them. FWIW I prefer IRs to be stable but I am in control of my own destiny and my own finances and will deal with any changes as and when required. I have never known IRs be so stable but I remember the Tories lowering them before election day to create a feel-good factor and raising them straight after to 'contol inflation' (or reward the rich and quash the poor).

I would never suggest that anybody should go into unmanageable debt for any reason - even house purchase. If I didn't own a house already, I would not buy at the moment. I would also accept that I may never buy. Renting is a great alternative or at least it used to be until you-know-who forced councils to sell their rental stock.



GG

sm9ai

Its looking more likely to go up now.

3:1 on betfair now, was over 10:1 earlier.