Raising Rates to 1% what will it do?

LilacPixie

Defaults stay the same.

Really2 wrote: »

Saw your Sig, all the best for next month.

Thanks :eek::eek::eek: scarier prospect that increasing rates IMO

Really2

Lower GDP

TBH Graham I thought it would be good to get a cross section of thoughts.

I only said about you because you have a strong view on it.

I do not say anyone is wrong in their own opinions on the future, I just back up my own opinion that is all.

Really2

Lower GDP

LilacPixie wrote: »

Thanks :eek::eek::eek: scarier prospect that increasing rates IMO

At least you will stop inflating and should see some deflation over the next year.

LilacPixie

Defaults stay the same.

Really2 wrote: »

At least you will stop inflating and should see some deflation over the next year.

haha I'm better I am the size of a walrus but less mobile :mad:

Anyway subject at hand rather than my now complete family, and it is complete. Actually speaking of which they will not give DH the big snip. He doesn't meet the criteria for our PCT, needs to be over 37 :eek: The Dr will perform the operation in the NHS hospital but with OH as a private patient though:eek::eek::eek:. So what are you saving money for this year LP?? Newer car? maybe some home improvments? Na my husband vasectomy:rotfl:

The rising cost of inflation, the struggle to get 0% credit card deals for a bit of stoozing and pathetic savings rates all negitivley impacts on my ability to get hubby neutered

In all seriousness though I always associate base rate rises with mortgages and then secondly savings rates. I do struggle to understand the general theory that base rate helps control inflation. I thought that fuel and food price increases were fueling the current rises so how does a higher base rate control that??

ILW

Two bricks would cost less tha a pound if bought second hand.

sw67

They will wait a long time before putting rates up - most people i know have not had a wage rise for 2 years but have watched their outgoings increase month after month. Most of the increases i have noticed have been due to external forces the uk has no control over so why would increasing interest rates help.

I do feel for savers but the economy has had enough money taken out of it with vat , fuel and food that i dont think it could stand any interest rate hike

ILW

Why is the payment of VAT considered to be taking money out of the economy?

Really2

Lower GDP

ILW wrote: »

Why is the payment of VAT considered to be taking money out of the economy?

Decreases disposable income. Thus people have less to spend, they will buy less etc.
It is part of a fiscal tightening policy, so it should be taking money out of the economy.

RenovationMan

Lower GDP

If rates go up I will have to sell my £450k house to a bear on here for £1.50.

ILW

Really2 wrote: »

Decreases disposable income. Thus people have less to spend, they will buy less etc.
It is part of a fiscal tightening policy, so it should be taking money out of the economy.

But surely the government spend it on something, so putting it back into the economy.