Bank of England raises interest rates again

[JohnD]

"Bank of England raises interest rates again
Inflation expected to hit 8% by June"


So still way below inflation.

So savings are being eroded.

"The Bank of England raised interest rates from 0.5 per cent to 0.75 per cent on Thursday, underlining its resolve to fight soaring inflation which is now expected to hit 8 per cent by the end of June.

The quarter-point rise — the third back-to-back increase since December — has returned interest rates to their pre-Covid level and places the BoE at the forefront of a global move to tighten monetary policy, following this week’s increase by the US Federal Reserve.

The monetary policy committee said Russia’s invasion of Ukraine would “accentuate both the peak in inflation and the adverse impact on activity by intensifying the squeeze on household incomes”.

FT.com

 

[Mottie]

Why is that John? Any other countries worse off?

 

[Ihavenojob]

Why is that John? Any other countries worse off?

I think the USA are up Poopen Strasse.

 

[Notch7]

I think the USA are up Poopen Strasse.

Im not sure about that

“The USA economy added 678,000 jobs in February 2022, far above economists' expectations”

 

[Mottie]

Anyone know what the U.K. rate of inflation was last year compared to the average of those countries in the EU?

 

[JohnD]

Why is that John? Any other countries worse off?

we are a bit worse than Germany and considerably worse than France.

 

[Mottie]

we are a bit worse than Germany and considerably worse than France.


View attachment 264583

And the other 25 EU members?

 

[Ihavenojob]

And the other 25 EU members?

Overview current inflation - current CPI inflation by country or region

 

[JohnD]

if you want to see how the smaller countries (not comparable to the three European majors) are doing, you can graph it.

https://www.ft.com/content/088d3368...egmentId=3f81fe28-ba5d-8a93-616e-4859191fabd8

But with 28 lines the graph will be unreadable.

 

[^woody^]

we are a bit worse than Germany and considerably worse than France.


View attachment 264583

How much is a packet of hobnobs in France? A three bed semi, a piece of CLS, a bloke to fix a leaking roof, a filling, a kW of electric? You know, all the things that people have to pay for.

What, you mean interest rates are the single factor that determines if we are "a bit worse than Germany and worse than France"?

 

[JohnD]

How much is a packet of hobnobs in France? A three bed semi, a piece of CLS, a bloke to fix a leaking roof, a filling, a kW of electric? You know, all the things that people have to pay for.

What, you mean interest rates are the single factor that determines if we are "a bit worse than Germany and worse than France"?

The topic of this thread is inflation and interest rates in UK.

Are you hoping to find something you like in other countries?

 

[motorbiking]

Eroded at pace too. You have to have a pretty active investment fund to match inflation at the moment. Its about time we saw bank interest rates at 4-5%.