Increasing the interest rate to 5%, is this really the fairest way to slow inflation?

I too see no purpose in the govt “helping out” any further I do think perhaps the things banking have suggested today might help in the short term - no repossessions for 12 months (assuming this means 12 months of shortfalls in payments), short term moves to interest only and extending the term of the mortgage thus lowering repayments. I think it’s a little naive simply to suggest “things will work themselves out” I remember back in the 80’s people losing their homes and would hate to see this happen again. Also “grocery” inflation is apparently running at around 25% - an area quite hard to cut down on too much. I feel so sorry for people finding themselves in these situations

Excuse my musings if the banks put up interest rates on savings accounts and ISA’s more people would lock their money away for a 1/2/3 or even a 5 year period which would take money out of circulation which under normal circumstances would help bring down inflation.

Unfortunately inflation is being driven by more external factors than supply and demand, but every action would help.

Germanshepherdsmum

In those days people didn’t expect the government to help them with everything 4allweknow. We took it on the chin and economised as necessary.

Didn't you accept your MIRAS?

growstuff one of the reasons we delayed getting married was whilst we were single despite living together and a joint mortgage we both were able to claim miras

Everyone did growstuff, whilst it was in place. It wasn’t optional. I expect you did too.

Gordon Brown put a stop to Nora’s arguing it was only benefitting middle class couples. Typical!

Not Nora’s but miras

Indeed ronib. Typical.

Lots of Comment about the Governement BUT the Bank of England is Independent of the Government which many choose to ignore. Now lets be REAL. The Price of FOOD has risen due tothe massive WORLDWIDE drought that occured last year. You cannot grow food without water. The Common Rules of Supply and demand apply. The same applies to Fuel Costs. Now these are coming down and that wil be reflected in the June and July figures for Inflation. Now I lived through of 17% in the 1980's and It didn't finsih me off BUT then I was not a person that believed in a 2 to 3 % Mortgage rate for 25/30 years. Thise that have have only themselves to blame. Live in the REAL World.

growstuff

Germanshepherdsmum

I agree Katie. There is much that could be cut back on, as you have already said. People have to choose between keeping a roof over their heads and having the latest phone, takeaways and ready meals. I’m sure we have all had to make choices to pay the bills.

So what happens to all the people who produce and sell the goods/services you deem non-essential?

We bring in less overseas workers, it’s as simple as that, maybe we do prefer to work flipping burgers, delivering pizzas, or varnishing nails but it’s not essential there is plenty of essential work to be done.

Katie59 do you not think people should be able to choose their profession?

Beauticians, nail technicians, hairdressers who specialise in extensions and eyelash technicians all have to train, have to pass exams, have to have liability insurance.

The beauty industry is big in the U.K. I do not wish to see it wiped out because people think they are irrelevant.

I agree with GrannyGravy.

Additionally, I'm not sure what kind of essential work you're thinking of Katie59, but I assume care work would be included. Would you really want to be cared for by somebody who really didn't want to do the job and wasn't very good at it?

Shouldn't the "plebs" have some choice in the work they do and be allowed to do something they're suited for?

Trurider1

Lots of Comment about the Governement BUT the Bank of England is Independent of the Government which many choose to ignore. Now lets be REAL. The Price of FOOD has risen due tothe massive WORLDWIDE drought that occured last year. You cannot grow food without water. The Common Rules of Supply and demand apply. The same applies to Fuel Costs. Now these are coming down and that wil be reflected in the June and July figures for Inflation. Now I lived through of 17% in the 1980's and It didn't finsih me off BUT then I was not a person that believed in a 2 to 3 % Mortgage rate for 25/30 years. Thise that have have only themselves to blame. Live in the REAL World.

The government does have a provision to overrule the Bank of England.

Germanshepherdsmum

Everyone did growstuff, whilst it was in place. It wasn’t optional. I expect you did too.

Yep! We both accepted government support, so I was wondering why you denied it.

GrannyGravy13

growstuff one of the reasons we delayed getting married was whilst we were single despite living together and a joint mortgage we both were able to claim miras

I didn't realise that. Maybe if I had, we would have delayed getting married.

The beauty industry is largely unregulated and many who work in it do no more than attend a very short course which produces a fancy certificate to display - and I doubt many are insured.
No, people don’t have a right to work in their trade or profession of choice if no jobs are available and the alternative is being paid benefits courtesy of the taxpayer.

You trying to be clever growstuff?

Katie59

growstuff

Germanshepherdsmum

I agree Katie. There is much that could be cut back on, as you have already said. People have to choose between keeping a roof over their heads and having the latest phone, takeaways and ready meals. I’m sure we have all had to make choices to pay the bills.

So what happens to all the people who produce and sell the goods/services you deem non-essential?

We bring in less overseas workers, it’s as simple as that, maybe we do prefer to work flipping burgers, delivering pizzas, or varnishing nails but it’s not essential there is plenty of essential work to be done.

Which of these essential jobs which nobody else wants to do are you volunteering yourself and your family to do Katie59? That sounds very much like ‘I’m alright Jack’.

Germanshepherdsmum

The beauty industry is largely unregulated and many who work in it do no more than attend a very short course which produces a fancy certificate to display - and I doubt many are insured.
No, people don’t have a right to work in their trade or profession of choice if no jobs are available and the alternative is being paid benefits courtesy of the taxpayer.

No idea what beauty establishments you frequent GSM

Even the Chinese/Vietnamese nail shops have to have third party liability insurance and regular checks.

GrannyGravy13

Germanshepherdsmum

The beauty industry is largely unregulated and many who work in it do no more than attend a very short course which produces a fancy certificate to display - and I doubt many are insured.
No, people don’t have a right to work in their trade or profession of choice if no jobs are available and the alternative is being paid benefits courtesy of the taxpayer.

No idea what beauty establishments you frequent GSM

Even the Chinese/Vietnamese nail shops have to have third party liability insurance and regular checks.

I was thinking that, most beauty therapists I’ve used have done at least two years at college, and have walls covered in the certificates they have gained for specific procedures.

It amazes me that people think it’s fine to force other people into jobs they have less interest and skills in than what they do now. I’d ask myself how would I like that if it was my son or daughter, having been to university and working in their chosen professions, if they were told we don’t need you in that job now, you’re going to work in a factory, or become a carer. They would be miserable.

I don’t frequent beauty salons GG, but I remember the trouble when a local so-called beauty therapist was sued. She had no insurance and went bankrupt. As I said, the industry is largely unregulated so I would consider the certificates on the wall pretty worthless.

GrannyGravy13

Excuse my musings if the banks put up interest rates on savings accounts and ISA’s more people would lock their money away for a 1/2/3 or even a 5 year period which would take money out of circulation which under normal circumstances would help bring down inflation.

Unfortunately inflation is being driven by more external factors than supply and demand, but every action would help.

Inflation is being driven by external supply shocks, and now, the BoE raising interest rates.

People saving their money instead of spending, it seems to me, will just result in putting companies out of business, though I have seen it argued that they might reduce prices in order to get people buying.

Saving instead of spending doesn't appear to me be helpful at all.

But, how long could they sustain that for? Particularly if they are having to pay increased charges on loans and rentals.

And it will do nothing for inflation, because our current inflation is not being caused by too much money swilling around in the economy. I don't understand how people don't understand this.

I don't think much came out of Hunt's meeting with lenders apart from credit ratings being unaffected for those with repayment problems and a deferral of repossession by 12 months. Most lenders will be flexible up to a point but repayment holidays, part payment etc., simply defer the debt.

What more do you expect?

The beauty industry is largely unregulated and many who work in it do no more than attend a very short course which produces a fancy certificate to display - and I doubt many are insured.

You're off on your DM rhetoric again, GSM. How do you know that what you are claiming is true? Do you have data to prove it?