HIKE IN IN­TER­EST RATES

Runcorn & Widnes Weekly News - - Yourviewsw - D A El­lis

WE are told the Bank Of Eng­land wants to keep in­fla­tion in check, which ob­vi­ously is good for us all, giv­ing us more spend­ing power.

But be­cause in­fla­tion has dropped it has af­fected the pound, mak­ing it lower. Logic would tell us that lower in­fla­tion would help the pound. Ap­par­ently the mar­kets are dis­ap­pointed be­cause lower in­fla­tion in­di­cates that the Bank Of Eng­land may not in­crease in­ter­est rates in the near fu­ture. Why would they want in­creased in­ter­est rates along­side higher in­fla­tion?

This would be bad for con­sumers and home own­ers.

I know savers lose out, but the amount that in­ter­est rates would in­crease would be small, but sig­nif­i­cant for home own­ers, and in­fla­tion would pos­si­bly wipe out any gains.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.