BoE set to keep interest rates at record low

ILW

chucky wrote: »

,

whatever big Merv says, he says. what he doesn't say is probably more of interest.

What he seems to keep saying is "It's not my fault", "I didn't expect that to happen", "I didn't allow for that", "I have an index linked pension" etc etc.

IveSeenTheLight

greenbubble wrote: »

only if accompanied by wage inflation ?

greenbubble

I believe there is wage inflation in general at the moment.
Can;t recall the last year there was wage deflation

greenbubble

IveSeenTheLight wrote: »

I believe there is wage inflation in general at the moment.
Can;t recall the last year there was wage deflation

cant find a link , but isnt wage inflation running at about 2.2% while the headline inflation rate is about 5.5% ?

i am more of the opinion that its the increase in commodity prices brought on by currency debasement that is the key driver in the cost push inflation we are seeing.

if you were to see both at this time we would be off to the moon and in a hurry.

greenbubble

Gorgeous_George

The deal is...

... the low paid will pay for the !!!!less super rich who lost £Billions for the country.

Inflation is far more effective at stealing money from the low paid than high inteest rates. Get used to it.

GG

IveSeenTheLight

greenbubble wrote: »

cant find a link , but isnt wage inflation running at about 2.2% while the headline inflation rate is about 5.5% ?

i am more of the opinion that its the increase in commodity prices brought on by currency debasement that is the key driver in the cost push inflation we are seeing.

if you were to see both at this time we would be off to the moon and in a hurry.

greenbubble

Your close
Wage inflation is circa 2.3%
CPI is 4.4%
RPI is circa 5.5%

However CPI and RPI is irelevant when discussing morgage debt.
As an example, if you borrowed £100,000 last year and lets assume your on a fixed rate or indeed an SVR whixh has been fixed for the last 18 months or so.
After one year, your wages has increased 2.3%, your debt has reduced via a years payments.
Extrapolate this over the years and you will see that the debt is reducing while wages increase.

If RPI and CPI were sustainable and not likely to lower, it would put pressure on the economy to increase wages in line.

However it's clearly been demonstrated that inflation is currently running higher due to the increase in VAT and this is expected to level off once January comes around and you'll likly see inflation lower. as the offset from last year being 17.5% against this year being 20% equalises

replumbed

IveSeenTheLight wrote: »

Your close
Wage inflation is circa 2.3%
CPI is 4.4%
RPI is circa 5.5%

If RPI and CPI were sustainable and not likely to lower, it would put pressure on the economy to increase wages in line.

However it's clearly been demonstrated that inflation is currently running higher due to the increase in VAT and this is expected to level off once January comes around and you'll likly see inflation lower. as the offset from last year being 17.5% against this year being 20% equalises

The one-offs that the BoE choose to ignore, are only those that increase inflation. Interesting that.

They should do their job and stop making excuses.

Herbie_Hancock_I_wish

Lost me job. Not well . I will partly on sickness pay. Thankfully no mortgage. Our 6 figure sum of savings is knackered . Sitting there, for as the banks would like to get their grubby hands on it.

Inflation , don`t get me started , Housing was kept out of that equation. Will not comment . However the price of oil , food , stamps and so on is getting out of order .



So what hapens when they cut public jobs ? Not even seen that. The unfunded pensions , the kids out of work. Pay a great deal to do some daft degree.

Lots of folk in massive debt

lisyloo

Our 6 figure sum of savings is knackered

Why have you go a 6 figure sum in savings?
Why don't you have a balanced portfolio of investments.

Sitting there

Looks like poor financial planning to me.
You should have a balanced portfolio that balances capital risk, liquidity, inflation risk and shortfall risk.

So what hapens when they cut public jobs ? Not even seen that. The unfunded pensions , the kids out of work. Pay a great deal to do some daft degree.

Basically the standard of living will go down.
Did you think it could go up forever? With people living longer and immigrnats willing to work for less and other countries willing to do work for less??
There is a certain inevitability about it don't you think?

It doesn't sound like planning is your strong point and that's something you should address to try to improve your lot.

Graham_Devon

IveSeenTheLight wrote: »

Your close
Wage inflation is circa 2.3%
CPI is 4.4%
RPI is circa 5.5%

However CPI and RPI is irelevant when discussing morgage debt.
As an example, if you borrowed £100,000 last year and lets assume your on a fixed rate or indeed an SVR whixh has been fixed for the last 18 months or so.
After one year, your wages has increased 2.3%, your debt has reduced via a years payments.
Extrapolate this over the years and you will see that the debt is reducing while wages increase.

Your mortgage may be less as a percentage of your take home pay if you get a 2% wage rise.

But CPI is where it is because of increasing prices elsewhere.

So if your fuel is now costing you 15% more since last year, then you have LESS money, not more, just because your mortgage doesn't get hit by inflation.

Doesn't matter how you put it, if your money coming in has gone up 2%, while your outgoings have gone up 20%, you are worse off and your wages don't go as far.

myhouse_2

If the quarterly figures show the economy is in reasonable +ve territory then there will be a rise in May.
If the quarterly figures are only a little +ve, there may still be a rise in May.
If the quarterly figures are negative, rates probably won't rise for an additional month or three.
But they will be going up this year. And they should - rates were dropped because of an emergency. We are not even in a recession now, never mind an emergency. Out of all the recessions we've had, this is the only one where we've apparently needed to drop IRs to this level.