Bossfarmer
Member
- Location
- between Perth and Inverness
Surely not
This was before yesterday,unsecured.Well someone told me lloyds were putting all business OD on 8% over base
This was before yesterday,unsecured.View attachment 1034114
So raise vat?Interest rates is a blunt tool to control consumer spending.
It hits business productivity at the same time as consumer spending.
Regulation are big employers. And coffee shops. Put them out of business and there will be plenty of unemployed.One of the biggest things driving up costs in the economy is government regulation.
I can't see that changing anytime soon though.....
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 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.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.
It would curb spending on non essentials yes.So raise vat?
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.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.
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.
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.
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.
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%?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 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.Get it back up to 10% where it belongs.
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.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.
Bloody hellThis was before yesterday,unsecured.View attachment 1034114