Thursday the Bank of England increased its interest rate by 0.5% to 3.5%, marking the ninth rise in a year and the highest rate since 2008.
The 0.5% hike is a slight decrease from the 0.75 percentage point rise in November, but Bank of England Governor Andrew Bailey and Chief Economist Huw Pill indicated that more needed to be done to bring down inflation.
Bailey warned of a risk of inflation not falling as quickly as hoped, due to the tight labor market, leading to the decision to raise rates.
It’s clear that despite totally misreading the effects of printing so much money and leaving the printers running for months (arguably years) too long they have moved on without remorse and not its householders that will pay dearly.
Many households face a double whammy of rising inflation and higher credit costs, and debt charity StepChange has called on lenders to show restraint before calling in loans.
The Bank’s report cited several indicators that showed the economy had weakened since the summer, and the US Federal Reserve and European Central Bank have signalled that they will ease back on rate rises in 2023. Although commodities and goods have dropped in price since earlier this year, cold winter weather and of course, the old chestnut of the Russian invasion of Ukraine being to blame could lead to an increase in gas and food prices, keeping inflation higher for longer.
Remember this is the same privately owned body that regularly predicts drops in house prices of 30% only to be shown wrong AGAIN!!!
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The question is with these unelected cartels across the world yielding so much power how can we actually influence them… Well in short probably not they are too deeply entrenched and so the real question is what do you believe and what actions do you take a a result.
Rachel Reeves, shadow chancellor, said the rate rise was made in Downing Street, leaving millions of working people paying a Tory mortgage penalty for years to come. Of course this is true but the problem is not either party it is the entire system that rules us now.
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