Interest rates

Jon 3085

Member
Location
Worcester, UK
Well someone told me lloyds were putting all business OD on 8% over base
This was before yesterday,unsecured.
FE1203E9-E465-4FB6-8C54-224BAEFD5BDC.jpeg
 

Jimdog1

Member
Mixed Farmer
Location
Devon
One of the biggest things driving up costs in the economy is government regulation.

I can't see that changing anytime soon though.....
Regulation are big employers. And coffee shops. Put them out of business and there will be plenty of unemployed.
 

DaveGrohl

Member
Mixed Farmer
Location
Cumbria
Itā€™s frankly comical that everyoneā€™s losing their sh1t over a base rate of 1%.

All the wailing and gnashing of teeth about recessions etc is simply ignoring the fact that weā€™ve had an absurdly low interest rate together with money printing on an epic scale for 14 years and arguably much longer. 2008 wasnā€™t allowed to play out as it shouldā€™ve been and so now the piper has come calling.

At no point in history has every country around the world indulged in the experiment weā€™re living through. Lots of individual countries have tried it in the past with catastrophic consequences but thatā€™s all been ignored by the worldā€™s leaders. The way of the world these days is to give the can an almighty hoof down the road but how do we expect this to be a justifiable policy? What did we think was going to happen? The days of responsibility and financial robustness have been booted into the long grass by the side of the road years ago. We now have a choice of politicians who are just promising whatever it takes to get into power/stay in power. If promising utterly stupid policies works then thatā€™s what they do. All round the world.

How did we get to the stage that a recession is viewed as the end of the world? They used to come round quite often. It kept everything on an even keel. Why did we expect we could abolish them? (Not even mentioning that idiot Gordon Brown). The fan is finally starting to feel a few freckles.
 

Jackov Altraids

Member
Livestock Farmer
Location
Devon
I doesn't make any sense to me either. The rate rise will hurt consumers and businesses at a time when they are already feeling the pinch from energy, food, labour cost increases etc. Why add to it?

I suspect they are just trying to back themselves out of the impossible corner of effectively no interest rate.
Under 1% is not sustainable so maybe they just think now is a good time to hide what is just another rise in the cost of living.
 

DaveGrohl

Member
Mixed Farmer
Location
Cumbria
I suspect they are just trying to back themselves out of the impossible corner of effectively no interest rate.
Under 1% is not sustainable so maybe they just think now is a good time to hide what is just another rise in the cost of living.
I have a certain amount of sympathy for the shower that are currently in charge (to be replaced at some point by another shower) in so far as it was a different shower that thought endless money printing and absurdly low interest rates were an answer to a question no one had yet posed.
 

farmerm

Member
Location
Shropshire
Last time we had these inflation figures the base rate was 10%...... The whole system is broken because we have for a generation been living beyond our means building up such debt that a 10% base rate now would bankrupt both personal finances and national finances. Forecast is rate will rise to 2.75% for an average UK mortgage of Ā£190,000 that will raise interest by over Ā£300/month, on top of fuel costs that is going to cripple a lot of folk.
 

farmerm

Member
Location
Shropshire
Well it had to come didn't it ? This modern idea of buying everything on the never never was never going to work. More fool those that thought it could last even this long.
ey but the worse part is those who avoided buying everything on the never never will bare more than their fair share of the pain... savings will be loosing 7%/year because of inflation. :X3:
 

Jackov Altraids

Member
Livestock Farmer
Location
Devon
Well it had to come didn't it ? This modern idea of buying everything on the never never was never going to work. More fool those that thought it could last even this long.

It's only those in charge that have been fools. I fear modern life is such that the average person hasn't had a huge amount of choice about being in the position they are in.
Last time we had these inflation figures the base rate was 10%...... The whole system is broken because we have for a generation been living beyond our means building up such debt that a 10% base rate now would bankrupt both personal finances and national finances. Forecast is rate will rise to 2.75% for an average UK mortgage of Ā£190,000 that will raise interest by over Ā£300/month, on top of fuel costs that is going to cripple a lot of folk.

It's going to make the current wealth divide into a huge canyon.
The gulf between the 'haves and havenots' will cause some serious social issues/ unrest.
 

farmerm

Member
Location
Shropshire
7610 super q said:
Well it had to come didn't it ? This modern idea of buying everything on the never never was never going to work. More fool those that thought it could last even this long.

It's only those in charge that have been fools. I fear modern life is expectations are such that the average person hasn't had a huge amount of choice about being in the position they are in.
 

DrWazzock

Member
Arable Farmer
Location
Lincolnshire
Iā€™ve never known such a cashflow problem due to buying expensive inputs. How the heck a rate rise helps is beyond me.
If grain prices slip back after harvest Iā€™m toast. The only alternative would have been to mothball for a year. Iā€™d imagine there are plenty of businesses across all sectors in the same boat, some with much bigger borrowings than mine. Canā€™t see this rate rise helping them at all. Just donā€™t understand the logic behind it.
 

jackrussell101

Member
Mixed Farmer
I can't see it. Everywhere I look the economy is running flat out and growth is constrained by a shortage of labour more than anything else. Every tradesman in the locality I have spoken to is saying they are stacked out with work and can't take on any more. I would say houses are no changing hands as fast as they were but there is a shortage of properties in many areas and often houses are viewed a million times within days of coming on the market. You look around and boom they are sold in a wink.

I spend my breaktimes watching the world go by and the rate at which money is changing hands is off the scale, McD's, Costa, diesel, spend spend spend and work work work. I'd say the economy is grinding on pretty well.
I'd agree with you at the minute, but if rates kept heading north there will be an eventual pinch point, its just what point that would be? 2%? 4%? Or 6%?
 
Get it back up to 10% where it belongs.
I agree but all those who, egged on by the government, took on huge mortgages at comic book rates so they could buy grossly overpriced houses might disagree. In the early 90s in a short space of time my mortgage more than doubled and while it wasn't exactly welcomed it wasn't really a big deal because the stricter lending criteria at the time meant people generally weren't in over their necks. What would happen today if everyone's mortgages suddenly doubled? Regarding inflation, a disaster has been coming down the track like a very large and very slow freight train - the time to increase rates was long ago, BOE have been asleep on the job.
 

7610 super q

Never Forgotten
Honorary Member
I agree but all those who, egged on by the government, took on huge mortgages at comic book rates so they could buy grossly overpriced houses might disagree. In the early 90s in a short space of time my mortgage more than doubled and while it wasn't exactly welcomed it wasn't really a big deal because the stricter lending criteria at the time meant people generally weren't in over their necks. What would happen today if everyone's mortgages suddenly doubled? Regarding inflation, a disaster has been coming down the track like a very large and very slow freight train - the time to increase rates was long ago, BOE have been asleep on the job.
All very well, but those who were prudent and saved for a rainy day will be mightily pissssed that their nest egg has being eroded since 2008. And yes, during the early 90's we were paying 17% interest on our mortgage at one stage, so I know how it feels.
 

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