Thursday, Jul 01, 2010
Not much for savers to look forward to
Telegraph: When will interest rates rise?
Various sources speculate that rates will stay low. Ray Boulger is quite explicit why: "Despite one rogue member of the MPC voting for a quarter-point increase in Bank Rate in June, the strong measures announced in the Budget will have a similar impact on consumers to an increase in interest rates and hence are likely to enable the MPC to keep Bank Rate low for an extended period. These low interest rates will help support house prices."
Posted by quiet guy @ 12:34 PM (924 views) Add Comment
2 Comments
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1. quiet guy said...
The Telegraph did another article about interest rates and inflation yesterday. MPC member Adam Posen maked it perfectly clear that he is relaxed about inflation: "A small slow upwards creep in inflation expectations is not worth panicking over, and certainly is not a reason to tighten policy when the forecast argues against so doing. And that kind of creep is indeed what I believe that we are seeing"
Bank of England's Adam Posen plays down fear of 'inflationary spiral'
2. tenyearstogetmymoneyback said...
And this is flanked by postings like "Borrowers warned of mortgage crunch"
I wonder how long it will be before one of the highly paid banking economists realises that
Higher Interest Rates mean more money coming in, which means more money to lend out ?