Bank of England Interest Rate Decision June 2023 - My Take
ฝัง
- เผยแพร่เมื่อ 19 ก.ย. 2024
- The Bank of England is battling core inflation of almost 7% which marks is its highest rate of increase in the UK in over thirty years. UK investors are focused on the policy response of the Bank’s Monetary Policy Committee as it pushes up the cost of borrowing to cool but hopefully not crash the UK economy and get inflation back under control. Hear our summary of what the MPC says and does and what it means for investors and homeowners in the UK.
If you want to learn more about investing then why not become a pensioncraft.com member? To find what we offer and how you can join our friendly community click here www.pensioncra...
What Else PensionCraft Offers:
💡 Book a coaching session with Ramin so he can answer your questions in a one-to-one video call via Zoom: pensioncraft.c...
📰 Sign up for our free weekly market roundup to get news and views about what's going on in the stock market and wider economy pensioncraft.c...
📖 Understand investment in more depth with my online courses pensioncraft.c...
❓ Join PensionCraft on TH-cam and you’ll be supporting me to make more content and I will answer your questions and respond to your comments on TH-cam as a priority www.youtube.co...
Where Else You Can Find Me
🎧Check out our weekly podcast "Many Happy Returns" on your podcast provider of choice many-happy-ret...
🌐 Website - pensioncraft.com/
📱 Twitter - / pensioncraft
👨 Facebook - / pensioncraft
🔗 Linkedin - / pensioncraft
Tools I Use To Create My Videos
✔️ My primary data source is SharePad and an affiliate link for this is here sharescope.co.... (This link provides new users with a special offer and gives me a small commission)
The rest of the tools I use are free open source software:
✔️ ggplot2 package in R for my plots
✔️ RStudio to edit and run R code
✔️ OBS to record my videos and live streams
✔️ Kdenlive to edit my videos
Take A Look At Some Of My Other Videos & Playlists
📹 Investment Strategies playlist • Investment Strategies
📹 Income Investing playlist • Income Investing
📹 Investing With Vanguard playlist • Investing with Vanguard
📹 Portfolio Building Blocks playlist • Portfolio Building Blocks
DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.
What shocked me was how long they kept rates abnormally low.
It’s because the economy has been in almost zero growth for years. Austerity since the early 2000’s
Great reset
Why are people so shocked. The interest rates now are at historical averages. The media or the public( in fact both) failed to recognise that the period of almost zero interest rates was the exceptional case!
They aren't shocked by the mean reversion. The shock comment is about the 0.5% instead of 0.25%. But they aren't really very shocked. The mainstream media do not describe how people feel, they describe how they want them to feel, and pretend to have some competence in whatever area they are commenting on. Because their main aim is to sensationalise and stir stuff up.
Right, it should have been expected. No shock about it.
Because house prices are now too high. Either wages have to increase or house prices have to come down.
The video mentions articles which claim that the financial markets, consisting of investors, NOT the general public, are shocked at the RATE of increase.
Interest rates being on historical averages doesn’t meant they’re not shocking, you have to consider the rates in the context of the economic circumstances. People and the economy have been used to 0.5% for many years, now if the rates increased to 5.0% across 5-10 years it wouldn’t be so worrying, the fact they’ve increased 14 times consecutively within 12-18 months is truly the shock factor, they’ve not allowed enough time for companies and people to acclimatise and the fact that wages are not enabling people and businesses to adapt makes it even more challenging and therefore more concerning. Please take into consideration the CONTEXT. There are many more variables to consider
Been overpaying my mortgage since I bought the place in 2005. My original deal was 5% in 2005 so I kept the same level of repayments running from 2005, even as my deals successively dropped to 2.2% then 1.69% I was always overpaying as if I was on a 5% interest rate, and investing in stocks in parallel. Just did a big payment to clear the mortgage last month as my final 1.69% deal ended. Count myself very lucky. And it was a 100% mortgage, zero down. Those were the days.
Well done. We did similar from 1990 and paid our mortgage off early.
As they seem to indicate the mortgage book with so much fixed is delaying the impact on the rises, which seems pretty obvious. So the decision not to start raising earlier during the “transitory phase” was a terrible decision.
The BoE did make a mistake by raising rates too slowly, but even this would still be insufficient to control inflation.
This video focuses only on interest rates, so it overlooks/ignores that other EU governments:
(1) intervened more with policies to keep down energy costs, especially in France
(2) don't suffer from the same labor restrictions as the UK does, because of Brexit.
These 2 factors are probably responsible for the especially high inflation in the UK, so it's as much the government's fault as the BoE's.
@@GonzoTehGreat I agree it’s not a single issue situation but the bank is supposed to weigh up the fiscal situation as well, by going too late they have made this much worse than it needed to be.
@@stubadds6890 I think it's fair to say the BoE made a bad situation worse, but also equally important to realize they're only partially to blame and not the most responsible, for 2 reasons:
(1) They can only control the base interest rate, which limits their ability to influence the economy, especially when it comes to inflation.
(2) They're effectively trying to predict the future, which is by nature inherently unpredictable, but currently even more so given the impacts of Brexit, Covid, the Ukraine War and the poor governance of the UK government over the last ~5 years, who are more to blame.
The BOE, PRA, FCA, and FOS in the UK are all clearly suffering from regulatory capture by HSBC and the Financial Industry. It poses an unsafe environment for foreign investors. Trusting the BOE, Bailey, or any bank's board of directors in the UK becomes questionable. The UK is rife with false, misleading, and incomplete information.
@@GonzoTehGreat Why just the last ~5 years?
The reality is that people coming off fixed rates are going to lose their life savings trying to stay in their now unaffordable homes. A £1000 a month on 1.5% mortgage rate is going up to £1900, add the 40% increase in energy bills and we are in a housing disaster. This is a social disaster and will change the country.
And the banks will win anyway.
@@Gumardee_coins_and_banknotes Hopefully, because I am heavily invested in bank stocks
YES, it is a disaster for many who trusted the forward guidance of the Central Banks. The UK has major problems BEWARE: The BOE, PRA, FCA, and FOS in the UK are all clearly suffering from regulatory capture by HSBC and the Financial Industry. It poses an unsafe environment for foreign investors. Trusting the BOE, Bailey, or any bank's board of directors in the UK becomes questionable. The UK is rife with false, misleading, and incomplete information.
That's the plan.
@@quokkapirquish6825 that’s a bit self centred and not very empathic towards those less fortunate
House owners have had it good for long time now, particularly those mortgaged using other people's money to make massive capital gains, cheap money went on for nuch too long.
Exactly they had it so good for the last 20 years. So they now all well off except for the young people who just entered the market and are f**ked by inflation and high interest rates. F**k you boomers.
Banks generally ‘create’ money, when lending. It isn’t someone else’s money. I hope this helps.
@@JLL12345You're correct and the original commentator doesn't know what they're talking about...
Mortgages are loans, but the money is created by the bank. It doesn't come from deposits. In this respect, mortgages contribute to monetary inflation, until they're paid off.
What a ridiculously ignorant comment!
Mortgaged owner occupiers haven't had it good at all. The only reason they could afford to buy over the past decade is because mortgage rates remained low, while over the same period, property prices rose significantly, but wages stagnated. Rates are now rising, so unless prices fall, new buyers will have to rent, while existing owners struggle to keep their homes.
If you want to lay blame then consider instead those people who bought multiple properties to rent out under "buy to let", driving up prices by turning homes into investments. They've been profiting from the housing shortage for a decade, but can continue to do so, albeit with smaller profit margins, by raising rents.
U mean the millions of people who save and work and pay and balance the chequebook month to month. U might be able to apply that comment to a tiny percentage of very wealthy people but the other 50 odd million would be crushed. Like everything its massively complex, uncontrolled immigration, new builds, green belts, culture of not saving, instant gratification poor personal financial management there's lots of factors. The comment shows a lack of wider thinking, understanding and experience with a heavy dose of bitter resentment.
How is it good for savers to earn 4.5-5% whilst inflation is around 8%? Surely it was better for savers to earn 1% when inflation was 2%.
It’s better than 0.1% can’t predict the future elites movements.
Thanks, very informative as usual. I would say if the interest rate increase only affects 1/3 of people as you say in the video, then surely these rate rises is limited to the overall reduction of inflation.
I dont agree about the benefit to savers. We are much more damaged by high inflation as the interest rates are stiill so much lower than inflation and the interest is taxed. We wont be safe until inflation is brought down to 2% with interest rates at perhaps 4%
Agreed. The erosion of savings to inflation over the last decade dwarfs any recent increase in saving rates and it's disingenuous to suggest otherwise! Indeed, a channel which claims to be about investing should've recognized the importance of considering the Real Rate of Return.
Disappointing.
You are right you will make a negative return on simple interest rates**** don't forget there are taxes on interest *** BEWARE: The BOE, PRA, FCA, and FOS in the UK are all clearly suffering from regulatory capture by HSBC and the Financial Industry. It poses an unsafe environment for foreign investors. Trusting the BOE, Bailey, or any bank's board of directors in the UK becomes questionable. The UK is rife with false, misleading, and incomplete information.
@@GonzoTehGreat Cash at 5% may well perform better than other asset classes and loose less to inflation overall, plus clearly you are better off than before the raise so I don't see why you don't think its true to say that savers benefit- clearly they do.... just not in a net positive way to your purchasing power.
@@GonzoTehGreat He said specifically it's good for those who want no capital at risk.
@@richardswatman4011 Savers "benefit" in that they loss less money than before, which still defeats the point of saving...
Compare BoE to the FED and the BoE is doing such a bad job communicating the changes. The Fed telegraphs their next move greatly, such that the market is pricing it in and when it comes there's no surprise. Here on the other hand is jump after jump. It seems these people don't understand their job properly.
Thanks for all your work Ramin
My pleasure, thank you! @MrHotrod79
I truly enjoyed the video. However, I find myself pondering the evident lack of emphasis on the supply side. In the western world, we appear to have gradually discounted the importance of maintaining our own supply chains and domestic production. Unfortunately, we've reached a point where we barely produce anything, yet we remain hopeful that simply raising rates will be enough to resolve this predicament.
Yup. If inflation is a result of increased demand of same level of supply, either kill demand or increase supply.
Unfortunately we made decisions in the past to give up control of supply.
@@IncredibleMet neoliberalism at it's finest. Basically leading us into a dead end.
You are excellent at what you do.
I particularly appreciate how you give the right weight to the people's struggles.
only a month ago he was telling people to opt for a tracker mortgage? your mum knows more about finance then he does
@@whitewittock salty
BOE: "gee i wonder why this inflation is so sticky"
also BOE during the last 15 years: "let me just print 2 trillion GBP to support the economy"
Why can't we reverse at least half trillion of QE back?
I dont think savers benefit when the *real rate is still negative.
Rates have been too low for too long and zero is now thought to be 'normal'. They need to revert to mean at some stage, if nothing else they need to have the ability to lower rates if conditions demand which is tough to do from zero.
Can I add, I heard that the average base rate from the BoE since it's inception in 1694 has been, indeed, 5%. So we are at the very long term average. Is this therefore not too unsurprising to be here now? Further when we hear the counter argument to the 'back in my day rates were double digits' claim the comparison is usually made with regard to the 1980s/ early 90s. When the base rate was last at 5% it was 2008 so a comparison should really made with this time. Bear in mind: with 2 year rates at 6+% compared to 1-3 % in 2021 this does not mean everybody with a mortgage sees there interest portion of the monthly repayment triple since taking out the loan. Mortgage holders will have been paying off their principal debt since year 1 so the sudden increase applies to a diminishing balance. Yes, the one's really hit will be those with mortgages taken out after 2018 but what proportion of the total market do they occupy?
Hi Tim, I agree it's not surprising and I made comments in that vein during the Live Stream. That's a good point about not everyone seeing their mortgage payments triple. I don't have statistics on the proportion of the mortgage market that took out their mortgage after 2018. Thanks, Ramin
The party was fun….but the hangover is going to be long and nasty
GPB is up 25% against USD since crash lows last year. The lag responding to this will cause some really odd inflation prints for next 12 months.
This is actually a question I was about to pose to Ramin. What effect does exchange rate have on inflation?
More pain for the UK
The big difference between UK and US rate hikes is that the rate in US is now below the inflation rate whereas the UK rate is still well below the inflation rate hence the 50 basis point rise here.
A bigger difference between the US and the UK is that the UK has more variable borrowings and less fixed borrowings. This means that increases in rates has a more direct impact in the UK on the cash flows in the economy and not just on asset prices. Therefore the UK economy should be more sensitive to the rate increases.
31:22 The idea that there is a lag on monetary policy due to a higher % of fixed rates is an interesting one. In the USA, most home owner mortgages are 30 year fixed rate, yet their inflation rate is falling nicely.
What could be the key reason there?
I suspect the reason is this is indeed predominantly food driven inflation, which has caused the pressure and thus demand for higher wages, risking the wage price spiral.
The weaker pound again both USD and EUR exacerbating this issue.
I think it's more due to ENERGY than FOOD. UK food price inflation is currently higher, but energy is a larger percentage of overall household expenditure, so it has a larger direct impact, but it also has an indirect impact, as it causes other prices to also increase.
The UK is heavily energy dependent on energy imports to supplement their North Sea Fossil Fuels, which are also privately owned, so businesses and consumers must purchase energy at market prices, which have skyrocketed for a year and even though they're now failing, this decrease still isn't being passed on by energy PRODUCERS, who are profiteering.
From the US - Our version of Brexit wasn't as draconian. As our interest rates go up, imported goods prices go down as the relative purchasing power of the dollar increases. China is also devaluing their currency by lowering rates thus making goods even more affordable. I gather the iron wall against UK importing goods is not helping bringing down goods costs? These rate rises in the UK just seem punitive against the public. I think Brexit just made it easier to make the UK citizens a trapped economy. Alternatives and goods substitutions are limited. How have your exports not surged?
Here is your UK problem BEWARE: The BOE, PRA, FCA, and FOS in the UK are all clearly suffering from regulatory capture by HSBC and the Financial Industry. It poses an unsafe environment for foreign investors. Trusting the BOE, Bailey, or any bank's board of directors in the UK becomes questionable. The UK is rife with false, misleading, and incomplete information.
11:07 Sorry but looking at the chart since mid 2022, CPI and Core CPI are not in alignment with each other. CPI is not tracking Core CPI.
It will take more than 5% to reduce inflation meaningfully.
Unfortunately inflation in the UK cannot go down because of labour supply issues that Brexit created. The UK needs people to take jobs that are up for grabs especially in two sectors that hurt the average UK family the most, agriculture and construction. If the house and food supply in the UK doesn’t grow, inflation won’t go down.
@@Dimitris_1987 It won't go down anyway IMO. Keynesians have got it all wrong - inflation is about money printing and nothing else; Rishi will have to print more of it.
Fuel cost rose almost over night, its taken 5 months for them to start dropping !
Just got a mortgage offer for 5 years at 4.3%. When we applied, we were almost sure that in 5 years the rates would be around 2%. Now, we are not so sure..
Accept it now, I say!
Factor in after the 5 years has finished, I can't see these rates dropping in the next 20 years
Yeap, the only solution is extreme overpayments to reduce the principal as much as possible, before the initial period expires.
Yes, BEWARE: The BOE, PRA, FCA, and FOS in the UK are all clearly suffering from regulatory capture by HSBC and the Financial Industry. It poses an unsafe environment for foreign investors. Trusting the BOE, Bailey, or any bank's board of directors in the UK becomes questionable. The UK is rife with false, misleading, and incomplete information.
Maybe the Bank experts shouldn't have left rates at zero all these years if 5% is the avg, leaving at zero could be argued irresponsible by those in charge and paid a lot of money! If 2% is the best position why leave at zero. These people are incompetent, printing to much money and then stalling on rate increases - only my personal view
The difference between a wise financier and a educated economist-
A wise one will say
Consider how many 1 oz gold coins was required to buy the average house in the year 2000 now consider the same equation in 2023- note now cheap is now- a 7% return per year over the long term- and with the UK entering Stagaflation- Gold if the one money assest you should hold in the UK-
A educated economist will say invest into Stocks- buy bonds-
Be wise
Can someone weigh on this please:
The BOE wants to increase unemployment (indirectly) in order to reduce inflation, however we are in a tight labour market and require the long-term sick workers and early retirees to come back.
Isn’t this contradictory?
Banks are exploiting the situation.
Wages should be growing. The Bank of England created over £800 billion during covid and energy crisis and that money is in the economy. The M2 money supply has increased by over 25% since the start of covid which is a good indication that prices should go up by a total of 25% and also peoples wages should also go up by a total of 25%. There is enough money in the system to support this.
Wages, what a load of tosh, nobody is getting a 10% plus pay rise
NHS and public employees will, or they will cry about it
Politicians are!
It's ironic that he criticized the BoE for poor communication, because his constant references to "wage growth" were disingenuous. To be clear, wages have only grown NOMINALLY, not in REAL terms, so workers are still worse of economically.
I think what he's getting at is that when nominal wage increases contribute to CORE inflation (rather than CPI) which is "sticky", then it becomes much more difficult to reverse. Most workers aren't getting pay rises which match inflation, but if their pay rises significantly more than say, 3% then it could contribute to CORE inflation, thereby preventing overall inflation from falling back to 2%, instead reaching an equilibrium at say, ~5%.
@@roger4880 NHS and some public sector employees deserve a pay rise more than anyone else, as they've been underpaid for a decade, but this doesn't mean they'll get one under this government.
Only pensioners (state or DB ) Happy days 👍👍👍👍
Why are interest rates the only tool?
Reverse back a large chunk of QE?
Introduce one off covid VAT 10% hike for 24 months?
I take it you have paid off your mortgage. Why do you think rising interest rates are the best way of dealing with the situation?
What I could never understand when mortgage rates went super low was the people deliberating on +/-0.25% deals instead of fixing their mortgage for 10-25 years at the lowest rate since 1694 that seemed a no brainier as the interest rates would eventually revert to a rate a lot higher than it was. The U.K. obsession with house values ever increasing, driven on by all a sundry. Around us there are now half finished new housing estates so not very attractive for those who have just bought.
It would be interesting to know if Hotels and Hospitality is "Sticky" due to the good weather in the English Channel, and the extra money the gov is putting in to this sector. Anyway to remove this factor?
Hi @helixvonsmelix services inflation generally is sticky now that we've got such high wage growth. My guess is that the sectors with the tightest labour market would have the highest wage inflation and this is where inflation will prove stickiest, but I don't have data to back that up unfortunately. Thanks, Ramin.
House price have to fall for people to afford these interest rates.
What i don't understand how come educated people thought that holding rates zero would not create inflation...
If anyone has taken up a mortgage without doing their homework checking the maths on a range of interest increases, then Idk what to say. A mortgage is normally for decades and that historically low rate only had one way to go.
Maybe, but it's not like people had many options. It's a social tragedy, really, considering that this is one of the richest countries on earth.
YES, BEWARE DO YOUR HOMEWORK: The BOE, PRA, FCA, and FOS in the UK are all clearly suffering from regulatory capture by HSBC and the Financial Industry. It poses an unsafe environment for foreign investors. Trusting the BOE, Bailey, or any bank's board of directors in the UK becomes questionable. The UK is rife with false, misleading, and incomplete information.
I don’t think that people coming off their fixed rate mortgages in the next few years will have as large an effect on the inflation as the BOE and others seem to think. Only 28% of households have a mortgage, in many cases these were taken out years ago and, with promotions at work and past wages growth, the payments are, in many cases, no longer such a significant factor in monthly spend as they were. I’m afraid that it will be the increasing costs of businesses to invest (interest rates) and operate (wages and materials) that will be the most important factors leading to the downturn needed to reduce inflation. We’ve not seen much of that so far, so I think inflation will be with us for much longer than expected. The government needs to ignore the inevitable calls that will start for bail-outs from businesses or mortgage payers. That’s rather cruel, but unfortunately, I think, necessary.
The loss of confidence in the BoE chart has a corelation to Mark Carney ending his tenure as governor?! Maybe?
Great work. Keep it up and thanks 😀👍
Nice work. Any effect on LDI investing?
Just shy of saying that people shdnt ask for huge increments as the wage growth needs to be bought down in order to control inflation. Everyone earlier hated Andrew Bailey because he was direct abt it....
Why does nobody talk about the other methods which could be used to fix inflation more quickly , like increase taxes for all ? Surely all people should be used to solve this and not just expect the pain to be felt only by borrowers ?
The problem is the economy of the UK isn't a commodity economy
Let's say you increase taxes or increase the base rate so people have less money in their pockets. So they go get a haircut less. Now the demand for haircuts is lower. What does the local barber do? Lower the price of haircuts? How? He has to live and customer numbers are already down
Rising rates should also increase the relative purchasing power of the pound for imported items. Unless Brexit is making imports more expensive?
Clearly the shock is due to the rate of change. Anyone can rationally expect rates to normalise to historic levels over time but probably not in 12 months from their lowest ever level
Looks like we're in for a handish landing and a technical recession moving into Q4 23/Q1 24. Hopefully it'll be 6 months at most - do not envy the BOEs position tbh. Employers want to keep & protect staff with higher wages off the back of the external shocks, but this has created a mini wage-price spiral it seems, forcing the hard landing. The labour market being as tight as it is and the movement from job to job during COVID as well has definitely contributed.
Looks like we'll be the only G7 Country that will have this hard of a landing - question remains, do spread the pain across all of society or does it fall dispreportially on the millenials/students again like it did in 2008?
Whats the inflation rate on dog biscuits in the last year...hopefully less than on cucumbers....nice clear explanation btw...6% interests early next year would be great for me as my pension kicks off then..
Its only shocking if u believe what the government tell u.Its going to get even more shocking
Thank you
You're welcome @@mattanderson6672
It’s very simple expensive Fuel, expensive goods and services, plus the chance for all corporations to ramp the prices up even when there is no need to(Greed). Note: British Gas made bumper profits even though they cried poverty) no regulation by OFGEM, who is meant to be for the people, but clearly for the corporate and banking overlords. They will never stop inflation by raising rates. Not unless they make Fuel cheap and come out of the ridicules Green deal, carbon credit con game. This is a war on the middle class. They banks could control inflation, by reducing their money supply, but at their expense, which they will never do. Is this really a sign that the English pound and the US dollar are losing their purchasing power? Has the trust for the paper money started to disappear? Are people buying Bit coin, Gold, silver and commodities? Whys is the stock market so high, when it’s clearly due a correction. Look around the towns they are dead. Wake up people. We are being robbed; this is a war on the middle class and small business. Get ready for the black swan event and the implementation of a world CBDC. Resistance is not futile.
"People have successfully negotiated higher wages"... Not the Doctors!! Junior doctors pay still starts at only 14 pound an hour! Consultant pay also a fraction of other countries. Skilled healthworkers are leaving the UK.. and the UK is in a lot of trouble..
Yes our Jr doctors are paid badly but their wages do go up over time and most of them end up earning good but it's poop for the first 5 years or so
But that's why the nhs is affordable and the US system where they earn $400,000 a year is so unaffordable
@@kaya051285 There are other systems out there other than the US and NHS. Medicare in Canada is a public system but doctors get paid much more fairly (3x the amount as the UK). They also get paid more fairly in Australia (also around 3x as much). The 2k London weighting is peanuts. The argument about pension is ridiculous when these people don't realise there are pension caps and doctors need to "pay into a void" without any idea of where their money is sitting and the pension providers mismanaged all of the funds- it is a nightmare to retire. Go look up the NHS pension scandal if you want more info.
The government wants to introduce "learn on the job apprentice doctors" with not even them needing backgrounds in biology. Where is the staff to train these people? Do you want to risk your life in their hands?
Doctors have a stressful and valuable job and should be valued as such.
Thank goodness I’m done with mortgages. One thing I would say is that when we did have a mortgage (1978 onwards) there were very few fixes available at that time. It certainly was painful at times 1980 and 1990 in particular. I agree that if there were more floating rate mortgages the pain would not be as great. Looks like the economy is going to be propped up by prudent pensioners. Bet your bottom dollar the BoE will overshoot.
absolutely superb analysis and insights - thank you
You're very welcome @MrBerry67
Would be interested in a video about the VIX volatility index being at its lowest in 3 years
The calm before the storm!
How is the interest earned on money market fund tracking SONIA taxed? Is it regular income tax or cgt or divident income? I find mixed opinions online. When I read the fund fact sheet of LON:CSH2, it seems to be showing up companies and holdings in there. I found Xtrackers II GBP Overnight Rate to track SONIA better. Can you please clarify on them. Even on just etf i found xtrackers || and not LON:CSH2
Ramin will not clarify as it is a non-trivial tax question. I believe the answer depends on when and how long you have it in relation to the end of its reporting year. I would go as far as to say it is 'high risk' for the average punter without a tax accountant to hold it outside of a tax-free umbrella simply because of the tax complexity as with most accumulating ETFs. Ramin does not have to worry about it because a) he pays an accountant to do that for him and, b) I think maybe he has it in an ISA or SIPP.
Services have been putting their prices up to maintain or increase their profit margins. Pure greed. My bt broadband has gone up from 26 to 34 a month and they wanted 36 till I spoke to someone nice on their sales team. That's a 30% increase in 8 months.
Just cancled my broadband completely it was £21 a month but they wanted to increase it to £51 a month when I called them they said okay okay let's offer you another 18 months @ £21 a month
No thanks
I'll just tether my phone for the few times a month I watch TV the rest of the time I don't really need it anyway
great video but Wales isn't a region
How is transport at 0.16%? The fuel prices have gone up massively over the last couple of years and have bearly come back down. That figure can't be accurate.
It's if there's a massive price rise, everyone shouts about it, then there's a very slight drop in fuel prices but to nowhere near the previous prices, but the new baseline in peoples minds has shifted and they forget they've been shafted by gas companies.
When fuel prices go up, that counts as inflation as the price increased. If it stays at that price thereafter, that counts as inflation of 0%, as it hasn't continued to increase.
@@yourlovabledictator Yeah so it inflated about 100% in a couple of months and then stopped.
Working ppl already on food banks. What happens to them if they lose their job?
Any idea if you can buy a UK house using a US mortgage or loan?
Possibly via a refinance with a portion of funds listed for investment purposes. The bank needs to agree to the loan obviously and will need confidence via way of income and assets that there money is safe. Investment loan will likely attract a higher interest rate compared with typical mortgage.
Very informative, thank you
Glad it was helpful! @lucyhandley2611
Thank you and very informative video.
Glad it was helpful! @olunelum1
God bless your brother
Either you have to delete your video from a month ago where you said interest rates were soon going to come down so take a tracker mortgage, or you have to start this one by saying you got it wrong?
Sooner are later house prices need to become affordable again you can’t keep your head in the sand forever
Took Back Control 😢
Great video. Though skirted around saying we've got illegals in all of our hotels driving that 1.27% inflation, since government are printing for it.
Not sure anyone fully understands the impact of recent events impacting the markets/interest rates. GFC - QE - QT - record low interest rates - Brexit - lower trade/workers - pandemic - furlough - help to eat - number people drop out of work - Ukraine war and support - energy shock - cost of living - strikes with pay settlements. Quite a list ... some initiatives were deemed experiments at the time!
I see more experts are querying on similar lines to explain why UK weaker/worse than other developed countries.
Not factual in any way.
You're correct, but it's easier for some people to blame the BoE, especially if they voted Conservative!
Yes each G7 country will be different. The problem in the UK is BEWARE: The BOE, PRA, FCA, and FOS in the UK are all clearly suffering from regulatory capture by HSBC and the Financial Industry. It poses an unsafe environment for foreign investors. Trusting the BOE, Bailey, or any bank's board of directors in the UK becomes questionable. The UK is rife with false, misleading, and incomplete information.
This is going to drive a lot of people to drink. Shares in Diageo anyone?
I wish my mortgages during the 80s and 90s had been as low as 6%. People will need to stop all their indulgences like Sky Sports, tattoos, new smart phones, holidays, Netflix, fast internet, take always, fast food, new cars etc….. I did. 😊
Cars, holidays and fast food never existed in the 80s and 90s.. well I never!
Yeah but house prices weren’t like 10 times annual income then
@@liam11227654 proper interest rates will help reduce property prices and also will instill a respect for debt which is sadly missing from the current generation.
In terms of affordability (taking account of wages and house prices as a factor of wages) 5% today is equal to 25% in 1990. It's simply not correct to compare high interest rates in 1990 to today.
@@IgWannA2 poppycock.
Love your vids 👍🏻
Thanks @DSonBlue
How about mortgage interest tax relief for 1st time buyers?
So basically tax relief for propety asset owners funded by taxpayer? Does not sound very fair for taxpayer.
@@pistopit7142 If it's applied on a temporary basis to avert a recession, then yes.
@@sysdevman so the mortgage owners would need to pay it back or it goes towards their asset forever?
They've been behind the curve for a while. They should have raised rates more aggressively earlier on.
These BoE rate hikes have been gold for content creators. Gauranteed new vid material once a month. Not sure there's any wisdom there, but hey ho.
The Bank of England is doing a great job; God bless them
His Majesty and his Government, too. A big hurrah for them too.
Rates need to be 10%+. Borrow beyond your means and pay the price 😂
$AML
Let's get the property prices before the boom
As long as the war is ongoing in Ukraine, inflation in Europe won't settle. North America is a different story.
I think to help control inflation all members of the Bank of England monetary committee should take a wage cut, and they should make a bunch of their friends employed through nepotism redundant. Ohhhhhhh, my mistake sorry. The plebs must always pay the price 😂🥂 Righto James, was that rosé or champagne you wanted with your lobster? 🦞
Ŵhy people are so shocked Interest. Rate. Always. Was. 4. 5. Why They Worried. About. The. House. Of prices. Went. Too. Far. Far. Far. On. The. Sky. Time. 2. Fresh up let the market crashing houses I'm working full-time job and I can't afford to rent Proper property for me and my kids we needed housing crash it's gone far far than we think most go down we don't Care about market prices it's up 1 million Percent.its not normally
Yeah, well, how are you gonna afford even a cheaper house, when the interest rates are going to be high? There is no winning in this game, unfortunately.
@@kobalos73
Only way is if you buy outright.
Better to sell up now and leave the U.K. with house prices having peaked.