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Should they halt the interest rate hikes.....
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By *hagTonight OP Man
over a year ago
From the land of haribos. |
Before the recession? That is what an uk inflation expert warns the bank of england of what they should do as there could likely be a recession early next year, do you also agree with that? |
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"Before the recession? That is what an uk inflation expert warns the bank of england of what they should do as there could likely be a recession early next year, do you also agree with that?"
I don't really know enough about economics to say. |
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By *hoirCouple
over a year ago
Clacton/Bury St. Edmunds |
"Before the recession? That is what an uk inflation expert warns the bank of england of what they should do as there could likely be a recession early next year, do you also agree with that?"
Halt? No. They should cut it as it was only raised to drive prices up and stop people buying (yeah, I know) as that reasoning means it will steady the ship. The economists in this country are insane.
C |
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I don't know. There's likely to be a recession, if people can barely afford to live and have little spare money to spend on other things. They will potentially increase borrowing, which would be hit by rate hikes, though borrowing costs are extremely high, despite the record low base rates anyway.
I'm not an economist. |
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I have no ideaball I know is that during the years we were paying a mortgage interest rates varied wildly between 18% and 5% there were time when constant rate rises meant we really feared we wouldn't be able to afford the monthly payments. Now we have a little in savings rates are so low you might as well keep it under your mattress. |
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By (user no longer on site)
over a year ago
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I'm no economist, but I am glad I have 8 years of a fixed rate mortage before mine can go up... I honestly don't know what's worse, massive interest rates, or massive inflation. I just hope it's not both.....although a house price crash I'd be totally happy with. |
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"I have no ideaball I know is that during the years we were paying a mortgage interest rates varied wildly between 18% and 5% there were time when constant rate rises meant we really feared we wouldn't be able to afford the monthly payments. Now we have a little in savings rates are so low you might as well keep it under your mattress. "
It was chaotic at times, remember our guvnor in a panic when Lamont? Raised the rate to 15%, might have been black Monday related..
We stuck to fixed rate two year deals as I didn't want the stress of worrying about the ups and downs of those days.. |
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By (user no longer on site)
over a year ago
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Halt the hikes and the currency will fall relative to other central banks hiking leading to price increases regardless. The USD has shot up vs GBP recently partly due to the US Federal Reserve's aggressive rate hikes with more priced in later this year. It helps explain the increase in the price of petrol; double whammy of rising USD and oil price, which is also priced in USD.
The markets price in what is to come, not necessarily only what is happening now. |
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By *ea monkeyMan
over a year ago
Manchester (he/him) |
There needs to be a recession to stop and shrink the cost of living. Unless everyone wants to continue paying more for a pint of milk!
The interest rate hikes are intended to slow the public spending and trigger price shrinkage. |
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"Before the recession? That is what an uk inflation expert warns the bank of england of what they should do as there could likely be a recession early next year, do you also agree with that?"
I'm harking back to school here, OP, so definitely not an expert, and haven't seen the report you're referring to, but the Bank of England normally raises interest rates to try and reduce inflation. If you reduce interest rates, it encourages spending, so prices rise, causing inflation to grow (this is the theory anyway). |
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By *hagTonight OP Man
over a year ago
From the land of haribos. |
"Before the recession? That is what an uk inflation expert warns the bank of england of what they should do as there could likely be a recession early next year, do you also agree with that?
I'm harking back to school here, OP, so definitely not an expert, and haven't seen the report you're referring to, but the Bank of England normally raises interest rates to try and reduce inflation. If you reduce interest rates, it encourages spending, so prices rise, causing inflation to grow (this is the theory anyway)."
That is good and yes, the report came on the news feed of all kinds of news that I get and it is on bloombergs site, here is the link:
https://www.bloomberg.com/news/articles/2022-06-15/uk-inflation-expert-warns-boe-should-halt-hikes-before-recession |
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"I have no ideaball I know is that during the years we were paying a mortgage interest rates varied wildly between 18% and 5% there were time when constant rate rises meant we really feared we wouldn't be able to afford the monthly payments. Now we have a little in savings rates are so low you might as well keep it under your mattress.
It was chaotic at times, remember our guvnor in a panic when Lamont? Raised the rate to 15%, might have been black Monday related..
We stuck to fixed rate two year deals as I didn't want the stress of worrying about the ups and downs of those days.."
At one point we celebrated fixing our mortgage at 10%  . Imagine that! |
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By (user no longer on site)
over a year ago
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A recession maybe necessary to get us back to equilibrium of demand and supply. At the moment demand is more than supply. This is due to the pandemic, lots of producers haven't got back to full capacity for various reasons. A lot went out of business due to the pandemic, so less producers.
Also the war means whatever Russia supplied to the world has shot up because of the sanctions.
All the money printing by the government means a over supply of money in the system. House demand and prices are still crazy.
In a capitalist economic model recession is a economic version of a forest fire. Deadly but sometimes necessary. Just like a forest fire clears the forest of old dead and weak wood. To create space for new growth, a recession gets rid of weak businesses that have overborrowed and badly run. |
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By *hagTonight OP Man
over a year ago
From the land of haribos. |
"A recession maybe necessary to get us back to equilibrium of demand and supply. At the moment demand is more than supply. This is due to the pandemic, lots of producers haven't got back to full capacity for various reasons. A lot went out of business due to the pandemic, so less producers.
Also the war means whatever Russia supplied to the world has shot up because of the sanctions.
All the money printing by the government means a over supply of money in the system. House demand and prices are still crazy.
In a capitalist economic model recession is a economic version of a forest fire. Deadly but sometimes necessary. Just like a forest fire clears the forest of old dead and weak wood. To create space for new growth, a recession gets rid of weak businesses that have overborrowed and badly run."
Yes and also dont forget brexit as well. |
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By *hagTonight OP Man
over a year ago
From the land of haribos. |
"I have no ideaball I know is that during the years we were paying a mortgage interest rates varied wildly between 18% and 5% there were time when constant rate rises meant we really feared we wouldn't be able to afford the monthly payments. Now we have a little in savings rates are so low you might as well keep it under your mattress. "
Yes, you are right there too about it.
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"I have no ideaball I know is that during the years we were paying a mortgage interest rates varied wildly between 18% and 5% there were time when constant rate rises meant we really feared we wouldn't be able to afford the monthly payments. Now we have a little in savings rates are so low you might as well keep it under your mattress.
It was chaotic at times, remember our guvnor in a panic when Lamont? Raised the rate to 15%, might have been black Monday related..
We stuck to fixed rate two year deals as I didn't want the stress of worrying about the ups and downs of those days..
At one point we celebrated fixing our mortgage at 10% . Imagine that!"
Heady times..
Just when you think there's going to be a bit of global stability, more stuff happens..
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By (user no longer on site)
over a year ago
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The pound was worth so much more 25 years ago to now. With the abolition of the gold standard in the 1970s. The value of money has gradually lost value over the past few decades.
The rise of disposable consumerism and increasing over populated island. The loss of trades industries and companies in the UK in order for them to produce en masse low grade products at cheaper costs.
Spineless politicians and university educated economic students that I’ve gone into high-end jobs with little practical economical sense.
Ideologies and agendas. You’ll see gradually the middle class slowly fade away. |
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By *hagTonight OP Man
over a year ago
From the land of haribos. |
"There needs to be a recession to stop and shrink the cost of living. Unless everyone wants to continue paying more for a pint of milk!
The interest rate hikes are intended to slow the public spending and trigger price shrinkage. "
This  . |
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By (user no longer on site)
over a year ago
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"A recession maybe necessary to get us back to equilibrium of demand and supply. At the moment demand is more than supply. This is due to the pandemic, lots of producers haven't got back to full capacity for various reasons. A lot went out of business due to the pandemic, so less producers.
Also the war means whatever Russia supplied to the world has shot up because of the sanctions.
All the money printing by the government means a over supply of money in the system. House demand and prices are still crazy.
In a capitalist economic model recession is a economic version of a forest fire. Deadly but sometimes necessary. Just like a forest fire clears the forest of old dead and weak wood. To create space for new growth, a recession gets rid of weak businesses that have overborrowed and badly run.Yes and also dont forget brexit as well."
I didn't want this to turn into another Brexit thread. Obviously its had an effect but not as much as quantitative easing and the war. |
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By (user no longer on site)
over a year ago
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Seems like 1 depression after another since the banks crashed all those years back austerity then all this shit seems to me all they care about is the rich get richer and the poor get deader we need V |
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