UK BoE Interest Rate Rise

The £ has tumbled today.

Presumably that is much more to do with the prediction of 10% inflation rather than the interest rate rise.

Hopefully good news for UK stocks, as now become even more affordable for foreign investors :partying_face: every cloud has a silver lining :partying_face:

OTOH pity the poor people struggling to pay bills and buy food with a likely increase in their mortgage to add to their misery…

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Anyone that has a mortgage should lock it down with the longest term fixed rate they can find.

Europe has printed money like toilet paper for Covid and arming/rebuilding Ukraine isn’t going to cheap. The Ponzi Scheme that is the IMF will be wanting its kilo of flesh shortly.

I think with the relentless house price increases and many folks striving for ever larger property, and taking on ever increasing mortgages, not to mention latest cars and gadgetry, it must be a major worry. I think there are very many folks out there that have lived beyond their means, not having previously experienced high interest rates. I think that’s one of the major attractions about France, it’s distinct lack of consumerism versus UK. Always makes me wonder why so many people spend so freely with money that they simply don’t have.

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Couldn’t agree more with all the sentiments you have expressed.
Its one of the reasons I would not wish to return to the UK and worry so much about those trapped on plague island (for the benefit of @tim17) :slightly_frowning_face:

As you are clearly ashamed of and detest the country of your birth Graham I can only assume that you do not have a UK passport anymore and have taken French nationality, anything less would be hypocrisy surely. :grinning:

not so at all… what I detest is the awful regime who are destroying the credibility of the UK and putting honest and decent people’s lives at risk. Surely you can see that, or don’t you care?

I think the real pity right now is the actual detachment that the Government appear to have from reality and the majority of folks that live in the country. There seemed to be a bit of a rollercoaster of that happening as soon as Brexit dawned, and we saw the likes of a certain MP profiting from currency devaluation through some offshore haven setup. I’m certainly not anti-Tory, but it beggars belief what has been going on, and the future certainly isn’t looking too bright with regards the economy. Time will tell, but think many have certainly lost those rose tinted Brexit spectacles now, and heap onto that the whole covid impact and latest Ukraine events and it’s an absolute **** storm unfortunately.

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Just heard on PM that UK inflation could hit 10% this year. Lots’s of discussion about external forces, no mention whatsoever of Brexit. Dishonest reporting IMO. Inflation in France is “only” 2.9%, thank goodness.

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unfortunately John, some people here don’t seem to get it :roll_eyes:

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I needed a bit of cash recently and my bank advised me not to cash in any investments just now but to borrow instead. They gave me 1.5% fixed over a seven year term which I can redeem at any stage. I was pleased.

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10%…well that’s beyond eyewatering! Speaking to friends back in the UK and telling them what our electricity costs makes them weep. And now hearing that inflation comparison, well, let’s just hope the £ doesn’t devalue much more otherwise that will be hitting many in France as well unfortunately, including me :sleepy:

Well at least the lower inflation rate here goes someway to offset any sterling losses :thinking: The UK is forecast to have the lowest growth in the G7 and the highest inflation of any major economy in Europe. It’s very worrying.

Update, BOE says UK economy will shrink next year.

I live and work in France so what the government does here is far more important/relevant day to day than what happens at Westminster.

If Labour win in 2024 will you still refer to the UK as ‘plague island’?

you might think that, I couldn’t possibly comment :slightly_smiling_face:

What would the UK’s pronouns be under a Labour government?

I thought i understood basic economics…but with interest rates going up (which had been forecast for sometime), inflation moving towards 10%, a cost of living squeeze why are house prices still booming, quarter after quarter sigbificant % increases continue . Money may still be historically cheap but with reducing disposable incomes why are buyers confident to bid up prices?