WHY UK 🇬🇧 INTEREST RATE IS ON THE RISE : Part 1 (one)
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- เผยแพร่เมื่อ 2 ก.ค. 2023
- Please refer to part 2 (two) for related data on UK inflation, interest rates, average incomes, average house prices and shell profits.
On the 22nd June 2023 the Governor of the Bank of England Mr. Andrew Bailey increased the UK base rate from 4.5% to 5%
Days leading to the projected rise in interest rates the money & consumer expert Mr. Martin Lewis expressed his opinion on his Twitter feed of why he thought the rise was not a good idea.
Brexit, Covid, Ukraine war, the Liz Truss & Kwasi Kwarteng saga and the cost of living crisis.
The lack of regulation on cartels and monopoly institutions in the UK has been one of the key factors driving up UK prices on goods and services as well as keeping prices higher than all the G7 nations.
Bear in mind that US Mortgages and other EU and Scandinavian countries have mortgages fixed for the full term or life of the mortgage ie.2.99% for 30years such that any increases in for example US interest rates does not directly affect their mortgages. However the effect on UK mortgages is the opposite.
The Governor of the Bank of England had set his UK inflation target of 2% and used this single reason as the yardstick to increase the UK base rate by 0.5% at the expense of UK hard working families losing their homes. From the shocks or series of events that have hit the UK Economy since 2016 it is obvious that Mr. Andrew Bailey's 2% UK inflation target is unrealistic and impractical.
To add insult to injury the PM Mr. Rishi Sunak offered his full support to the Governor and Chancellor of Exchequer Mr. Jeremy Hunt offered UK hard working home owners to switch their repayment mortgages to interest only mortgages, to extend the terms of their mortgages and final projected repossessions could be deferred for 12months.
This video opens up a dialogue to take in diverse opinions to find solutions on how UK inflation could be brought down to stop the project further rise in UK interest rates. Analysts are predicting UK interest rates to rise to 6.5% by the end of 2023 if the inflation doesn't come down.
What do you think? What is the cause? What can be done?
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4th July 2023
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Good analysis. BOE Governor's response to the rise in interest rates, rise in cost of living etc is ' STOP ASKING FOR A PAY RISE. Rishi's response ' Hang in there, I've got this". 😠 😡
Because the Governor of the BOE was advised to during his last visit to Davos?
What do you think? What is the cause of UK inflation? What can be done? #SUBSCRIBE subscribe to our channel add you comments and contributions.
Good work done
Thank you! Cheers!
In principle, yr concern of wealth going fr d hv nots to those w plentiful, is to b applauded.
Regarding tackling inflation, r u suggesting price controls, which has been praticed at various times, eg Nixon in d US, Wilson n Callaghan in d UK, etc.?
Price controls r shown to b short term fixes. Solutions for d longer term can b more complex n involve, inter alia, making d overall economy more competitive.
As for making super normal profits, we first hv to define what is normal profit.
Besides profitability, there is also d need to consider production costs; failing to do so cld lead to shrotages.
Tackling d rich getting richer involves d political dimension. Is there d political will to tackle it? R d checks n balances in d system working as it shld b? Etc., etc., etc.. In a nutshell, what is d degree of corruption or moral rot .... n we venture into d social dimension.
Enuf food for thought, to go figure .....
Thanks for your contributions and insight on the history of price control in the US & UK. I did mention that price control is not the way forward but a strong regulation of the few cartels & monopolies that run the UK economy. Policing pricing and asking companies to support price increases above 5% is a responsible way to keep prices in check.
Super normal profits are evident amongst these cartels and monopoly institutions that run the UK economy. You can study the pattern of profits 5years to Covid and then 2020 to 2023 to ascertain this fact. Put it on a line graph and you can clearer see what super normal profit looks like.
In a society there is nothing wrong with people working hard and doing well for themselves. If there is an effective government, just as there is in Scandinavian and most European countries then an economic baseline must be present for the have nots.
What is wrong in the UK right now is self serving leaders with their hands in business and political post. Making policies to serve their personal financial benefits rather than serving the nation and the people who trusted them to serve. The lack of accountability, integrity and public servants abusing their power to serve and walking free without punishment.
You may be aware of the issues with Thames Water and the Director, who walked free after pumping sewage into British Seas whilst paying out massive dividends to share holders.
When the regulators caught up with her, she simply resigned from her post. She kept her assets and did not go to prison for heading an organisation/monopoly and treating the British people and society with contempt.
This is the state of affairs in Britain today. With the Brexiteers marginal vote for Brexit this is the way our sovereignty from the European s is being used.
In America if you want to make changes to the constitution you need 2/3 of congress and 3/4 of the state legislature. This system really scrutinised any changes that affects the Nation and her People. It is obvious that if this procedure was followed Britain will have still been in the EU and would've therefore stopped or eradicated the Political abused unleashed on this once wonderful nation by the Boris & Sunak Govt. The mess and waste since David Cameron plunged this Nation into chaos and left. (I abstained in the Brexit vote but just like many I could see the benefits of British Sovereignty).
Now it is obvious from the self serving leadership that the intention of Brexit is to enslave and take advantage of the British people using British Sovereignty.
The British people did not cause Covid, Ukraine war, cost of living crisis and high inflation. Why should the Governor of Bank of England Mr. Andrew Bailey use his single yardstick of 2% inflation target to push up interest rates to 5% and projected to 6.5% to destabilise the lives of normal ordinary hard working Brits?
Deliberately making decisions to cause decent British people to lose their homes. Repossess their homes and sell them cheap to their friends and families who are already rich? What kind of leadership is that? Insensitive and disregard to the very public that put their confidence in you to hold public office.
I rest my case
@@eecarttours I agree that self-serving leadership is d main source of d problem we r facing. Price controls will only tackle d symptoms. Question is, how do we deal w d source i.e. self-serving leadership?