Not raising rates is damaging the economy

Graham_Devon

The messenger has indeed be well and truly shot

chucky

ILW wrote: »

Not that fussed about interest rates any more, but personally concerned that the BoE seems to have lost control over inflation.

who said they've lost control of inflation?

ILW

chucky wrote: »

who said they've lost control of inflation?

For the last 3 years it has constantly been above their projections, they have either lost control or secretly decided to let it run.

Really2

The messenger gets in a huff when there is an opposing view.

Pointing out there are greater economical problems than bolstering the spending of the over 50's with cash reserves is not shooting the messenger, unless the bullet is logic?

ukcarper

Graham_Devon wrote: »

All very true. But what the article is saying is that pensioners are slowly cutting back the spending. Saga doesn't want them to hoarde more, rather the opposite, spend more.

More interest will allow them to spend more and put more into the economy.

The NS&I bonds could quite possibly be the absolute worst investment for pensioners, considering it's a five year bond. That would reverse spending even more.

I believe you can withdraw the money after a year and still get RPI.

[Deleted User]

Really2 wrote: »

The messenger gets in a huff when there is an opposing view.

Pointing out there are greater economical problems than bolstering the spending of the over 50's with cash reserves is not shooting the messenger, unless the bullet is logic?

+1

But don't worry Graham, you can always start another thread on the subject...

Really2

ILW wrote: »

For the last 3 years it has constantly been above their projections, they have either lost control or secretly decided to let it run.

Or that reacting to inflation on food and fuel was likely to be detrimental to the economy (their other remit).

Fuel and food cant keep going up forever without money increase following otherwise demand will fall.

EG look at oil last week, fell 10% as demand in america fell due to price.

Higher prices will lower demand eventually, it is not just the UK, it is world wide.

Graham_Devon

Really2 wrote: »

The messenger gets in a huff when there is an opposing view.

Pointing out there are greater economical problems than bolstering the spending of the over 50's with cash reserves is not shooting the messenger, unless the bullet is logic?

In a huff? What makes you think I'm in a huff? I'm just amused by the fact I'm getting the flack for someone elses article.

I'm amused people are suggesting index linked 5 year bonds, as the answer to pensioners retreating from spending. I mean, !!!!!!.

I'm amused that people doin't read what's actually said, and simply see "interest rates should rise" and automatically go into auto pilot.

I'm amused that so far, no one has actually looked at the point of the article. Rather attacked the person who posted it. I don't post these knowinly contencious articles to go off in a huff though. I post them because it's backup to my beliefs, and theres an amusement factor attached to the falling over oneself to justify why rates should stay low no matter what.

Look at the debate. It's all attack the poster from the same people each time. Every single post. Which is why I said no doubt the messenger will get shot. Only ILW has so far asked a question actually based on the article.

ILW

On a connected theme, the tube workers have just negotiated a pay deal based on RPI Plus, if this type of settlement becomes commonplace then we will get into an inflationary spiral.

chucky

oh dear... predictably the Devon bloke gets found out and predictably goes on the predictable tangent making up that he is being attacked.

it's getting obvious how desperate he has become...