MSE News: Bank of England base rate held at 0.5% again

MiserlyMartin

henrik1971 wrote: »

Isn't the problem though Martin, that increasing interest rates will not significantly reduce inflation, which is being caused mainly by energy and (to a lesser extent) food price increases.

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I don't think so. Core inflation, we are told repeatedly over 2 or 3 years now, is 'expected to fall back' bringing CPI/RPI back towards target once they fall out of the measure. This obviously has proven to be total bull and is a smokescreen, the reality is that everything that is going on is inflationary. QE, low interest rates. They want to raid the pound in your pocket, they just don't want you noticing or knowing about it. So they are feeding the public bull. Add global price pressures from countries such as china etc, rising commodities its not looking that inflation is falling on its own.

theosnw

Not that I'm educated about the matter but the low base rate has been a God send.

I bought my first house at the peak of the market 3 years ago at 100% it's now worth 18k less because of the market drop but at least now I can start ploughing money into my mortgage to cut my losses.

Most if not all the people I know do not care about the devaluing of the pension mainly because they don't see it affecting them or they have already made other arrangements.

I must admit I was a loose borrower and may have added to the problem to some degree in the past but I must say I did eventually settle all my debts.