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Bank of England leaves interest rates at 0.1%

J.Stalling

New member
Jul 27, 2021
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Source: https://www.ft.com/content/1e16a935-9407-4822-a522-89bc76fba069

Monetary policy committee votes 7-2 to leave borrowing costs at current record low of 0.1%
Though interest rates are forecasted to rise to 1% by end of 2022, how likely would this be?

Why does this matter? Simple! When it raises interest rates (and it will raise them soon), it will be the first of the major economies to do so. New Zealand has raised interest rates, but they're much smaller and less significant than the UK. This will set off a precedent and it will show the first step of banks around the world in tackling runaway inflation.

Meanwhile, the Federal Reserve has only just declared that they will start to taper. It will take them half a year to fully stop asset purchases and possibly more before they raise interest rates.

Yet, inflation has settled at a firm 5%+. Do you see what I'm getting at here? With inflation rate so high and interest rates so low, savers are really getting screwed here and those on low incomes are getting screwed even harder.

Honestly am surprised they didn't increase the interest rate.