The Bank of England have not not changed the interest rate this month, but my stingy mortgage provider did not pass on the full cut from the last time it was lowered, it seems to me that the banks have it all their way, they cut their savings rates yet keep the mortgages high, not really fair is it.
But the main thing I do not understand is how hiking interest rates helps curb inflation. Imagine this scenario. If I am a shop keeper with a mortgage to pay and interest rates go up, then I have to put up the price of my goods to make up for the shortfall. So how does that help keep inflation down?
Why is it water has gone up by 8%, trains by 10%, gas & electric by 15% and fuel by goodness knows how much, the price of a loaf of bread is well over a pound and yet they say inflation is under control. I will never understand economic policy.......
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment