Interest rates up 0.5% to 5.0%

hallmark

A few months ago I created a thread pointing out Andrew Bailey's total incompetence and how his perma-dove attitude and continual under-estimation of inflation was an utter disaster.  Some agreed some didn't. In the intervening months he's continued to do very little and consistently underestimated inflation.  He's also, to my knowledge, blamed it on many things (Energy, Ukraine, people wanting pay rises that are "too big", the fact that current rules allow the likes of certain utility companies to raise prices by RPI+an amount  (incredibly something he appears not to have realised until recently, even though that has been a direct cause of inflation spirals in the past)).

I've yet to see him blame himself for anything.  He does however, continue to trouser half a million quid a year for doing the worst job possible.

It appears the country and some of the people in charge are finally waking up to the disaster that ultra-loose monetary policy causes.  It's years too late but perhaps there is a chance things might begin to turnaround.   Of course, having done too little too late for so long, there will now be a massive price to pay, directly by every poor s*d who is about to remortgage, and indirectly by everybody else.

bristolleedsfan

https://twitter.com/Peston/status/1671840225620893696

"The Bank of England notes that markets now expect Bank Rate to average 5.5% for three years - which implies mortgage misery (2 yr mortgage rates of 6% plus) will be with us till long after the general election, or for years"

retiringtoosoon

my 1.14% fix ends in 3.5 years, so quite reassured by that

Pompeydave1967

retiringtoosoon said:

my 1.14% fix ends in 3.5 years, so quite reassured by that

Crikey that’s worse than my 2.33% fix that ends with charter next April .

eskbanker

Pompeydave1967 said:

retiringtoosoon said:

my 1.14% fix ends in 3.5 years, so quite reassured by that

Crikey that’s worse than my 2.33% fix that ends with charter next April .

Not worse if it's a mortgage that's being referred to....

metrobus

Carney was just as much to blame, all he done was keep the rates rock bottom and continually talk sterling down for the benefit of his banker colleagues who made billions from his total incompetence.

retiringtoosoon

eskbanker said:

Pompeydave1967 said:

retiringtoosoon said:

my 1.14% fix ends in 3.5 years, so quite reassured by that

Crikey that’s worse than my 2.33% fix that ends with charter next April .

Not worse if it's a mortgage that's being referred to....

correct...

Pompeydave1967

eskbanker said:

Pompeydave1967 said:

retiringtoosoon said:

my 1.14% fix ends in 3.5 years, so quite reassured by that

Crikey that’s worse than my 2.33% fix that ends with charter next April .

Not worse if it's a mortgage that's being referred to....

Yes of course could be a mortgage 

MarcoM

wealth tax coming imho

InvesterJones

Still a negative real rate so people with money are incentivised to spend it, helping keep inflation sticky.

Section62

MarcoM said:

wealth tax coming imho

Wouldn't that encourage people to spend their money before the government seizes it?  So therefore counterproductive in controlling inflation.

Or are you suggesting a retrospective wealth tax so people don't have time to spend, spend, spend?