Interest Rates Predicted To Rise Very Soon

farmerm

Member
Location
Shropshire
I am very skeptical that the old BofE pulling the interest rate lever to control inflation will actually make a jot of difference in today world. They are reluctant in pulling the lever for fear all that may happen is the curtain drops exposing them to be powerless in controlling todays inflation. What would putting 1% on the base rate really do to borrowers spending on food and fuel and other such "essentials" which are driving the inflation rate? Billions of pounds of quantitative easing should have created inflation in recent years yet it didn't. I think the Bank of China probably have more control of our economy that the Bank of England now.
 

cattleman123

Member
Location
devon
I am very skeptical that the old BofE pulling the interest rate lever to control inflation will actually make a jot of difference in today world. They are reluctant in pulling the lever for fear all that may happen is the curtain drops exposing them to be powerless in controlling todays inflation. What would putting 1% on the base rate really do to borrowers spending on food and fuel and other such "essentials" which are driving the inflation rate? Billions of pounds of quantitative easing should have created inflation in recent years yet it didn't. I think the Bank of China probably have more control of our economy that the Bank of England now.
I think your spot on...they have no control on input prices they are now price wise controlled be a world market...all it will do is put a lot of working families in poverty and they are not the ones stoking inflation at the moment...Also been told for years that governments need inflation to get the borrowing down...had it explained to myself in detail once and i did at the time see how it worked
 
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Actually I think I would go with Gold Coins. Kugerands or golden eagles. Just make sure someone knows where they are and also knows not to tell the government. As far as they are aware you died broke.
Backed it both ways in the end , Half to "stocks and shares Isa " and half to gold - sovs from the Royal mint . I'll be able to cackle whilst sitting in my chair , just running them through my fingers ! (y)
 
I am very skeptical that the old BofE pulling the interest rate lever to control inflation will actually make a jot of difference in today world. They are reluctant in pulling the lever for fear all that may happen is the curtain drops exposing them to be powerless in controlling todays inflation. What would putting 1% on the base rate really do to borrowers spending on food and fuel and other such "essentials" which are driving the inflation rate? Billions of pounds of quantitative easing should have created inflation in recent years yet it didn't. I think the Bank of China probably have more control of our economy that the Bank of England now.

Totally agree. B of E no longer have any control of anything really. All 1% would do is cost consumers money and there are plenty of other things doing that already?

Interest rates will sit bang low now across most economies for at least a decade I reckon.
 

cattleman123

Member
Location
devon
Totally agree. B of E no longer have any control of anything really. All 1% would do is cost consumers money and there are plenty of other things doing that already?

Interest rates will sit bang low now across most economies for at least a decade I reckon.
I have to agree with that statement...yesterday they were on about things not growing as fast as they thought due to a downturn in Oct...may move 0.10 just to say its doubled
 

Tubbylew

Member
Location
Herefordshire
Totally agree. B of E no longer have any control of anything really. All 1% would do is cost consumers money and there are plenty of other things doing that already?

Interest rates will sit bang low now across most economies for at least a decade I reckon.
I dunno, it isn't the base rate thats the worry, the banks have been on slim pickings for decades so will be looking for any excuse to raise their margin.
 

As I've said before- I don't believe interest rates really have anything but a cursory effect on the economy any longer. They have been overtaken by much bigger market forces that are influenced by events globally.
 

Steevo

Member
Location
Gloucestershire
As I've said before- I don't believe interest rates really have anything but a cursory effect on the economy any longer. They have been overtaken by much bigger market forces that are influenced by events globally.

I would agree. The cost of this rise in interest rates to peoples pockets will be almost insignificant compared to the squeeze they are facing with inflationary price rises on almost all goods. Most mortgages are for a longer, fixed term (i.e. 5 year) which also means people won't feel it it them immediately, whereas fuel costs are pretty much immediate.
 

SFI - What % were you taking out of production?

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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