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[Mr Skrunts]

Was down at my Girlfriends today and Classical FM was on, Adverts were running by, 10% off everything at Debenhams, 50% off at Argos, discounts at a sofa place etc etc.

Next thing the news comes on and the Bank of England start talking of a rise in interest rates (not sure if ithe base rate was mentioned)based on an increase in consumer spending.

Crazy, we spend more, they charge us more.  The bottom line is I reckon they want to keep this country in debt (the people at least) coz we are thier flipping cash machine.

It Stinks.

[Vamps]

I think we have a problem coming and i am getting a bit worried, gas and Elec up 40% by September!!!! gona be living on beans on toast...........from Aldi

[Tony H]

I think we have a problem coming and i am getting a bit worried, gas and Elec up 40% by September!!!! gona be living on beans on toast...........from Aldi

Aldi's beans have gone up by 20% in the last 3 months!

[Mr Skrunts]

Heard a mention of 46% on fuel costs,

Why do the interest rates have to go up, the knock on effect of people spending money surely is more spent, more products need making, more people to sell them , they earn more, they spend more.

Surely that is good.

This country could come to a stand still, it will get to the point where people cant afford to work, extra tax here, extra charge there, parking charge there, toll chare here, the firking list goes on.

[willyboy]

Yea Britain needs GAS !

Eat more Beans  

[stuart30]

I think we have a problem coming and i am getting a bit worried, gas and Elec up 40% by September!!!! gona be living on beans on toast...........from Aldi

Sounds like im gonna have too cut down on my online poker too just £25 a night from £50  

Well you need something too pass the time at work...

[Martin_1962]

If interest rates go up the UK is ****ed and all blame can go to Gordon (is a moron) Brown

[Marks DTM Calib]

They are worried about inflation which, even given the joke index they use now (this government changed it to hide how high it REALLY is) is to high.

And the only thing they can do in an attempt to try to control it is to raise interest rates.

The theory is that interest rates help to control demand, lower rates results in higher demand (in theory its cheaper to borrow money so people are more willing to spend it) and higher rates in less demand. The story goes that if demand out strips supply then prices are driven up (it takes a finite amount of time to increase production of goods......look what happened with 60G PS3's and Wii's at Christmas for an example).

Sadly, in this case, I fear it will have little effect as the route cause is rising energy costs driven by a global demand for fuel which is out stripping supply (hence why the oil and gas prices are so high) and I suspect there is little room to increase output.

[jereboam]

Sadly, in this case, I fear it will have little effect as the route cause is rising energy costs driven by a global demand for fuel which is out stripping supply (hence why the oil and gas prices are so high) and I suspect there is little room to increase output.

Not to mention global food prices...

You can see this, I can see this - why can't the Government and the BoE see this?

We're re-arranging the deck chairs while the Titanic sinks beneath us

That cheered me up a bit...

[jereboam]

I think we have a problem coming and i am getting a bit worried, gas and Elec up 40% by September!!!! gona be living on beans on toast...........from Aldi

Beans on BREAD - you can't afford toast

[Marks DTM Calib]

Sadly, in this case, I fear it will have little effect as the route cause is rising energy costs driven by a global demand for fuel which is out stripping supply (hence why the oil and gas prices are so high) and I suspect there is little room to increase output.

Not to mention global food prices...

You can see this, I can see this - why can't the Government and the BoE see this?

We're re-arranging the deck chairs while the Titanic sinks beneath us

That cheered me up a bit...

Which are again driven by demand out stripping supply and exacerbated by increased fuel costs increasing the production cost (transport, processing etc).

I have to say that I look what is happening and feel that interest rate increases wont do much in this case but, given its the only tool in the armoury, do you think they will try it

[jereboam]

Sadly, in this case, I fear it will have little effect as the route cause is rising energy costs driven by a global demand for fuel which is out stripping supply (hence why the oil and gas prices are so high) and I suspect there is little room to increase output.

Not to mention global food prices...

You can see this, I can see this - why can't the Government and the BoE see this?

We're re-arranging the deck chairs while the Titanic sinks beneath us

That cheered me up a bit...

Which are again driven by demand out stripping supply and exacerbated by increased fuel costs increasing the production cost (transport, processing etc).

I have to say that I look what is happening and feel that interest rate increases wont do much in this case but, given its the only tool in the armoury, do you think they will try it

I was wrong - you and I don't matter.  What matters is whether the Great British Public are convinced by Gordon that this is the right thing to do.  

My car-pool colleagues and I got into a shouting match about this yesterday - they are convinced that an interest rate hike will improve matters, so it looks like Gordon has made his point.

I sulked all the way from Stowmarket to Bury St. Edmunds.  

[Field Marshal Dr. Opti]

Governments have always pushed up interest rates in order to combat inflation.So the next move is likely to be up.
But we need to bring interest rates down in order to get the housing market moving again.
Little or no growth added to rising inflation equals stagflation.
Hard times ahead.Especially for those who have just bought a house.

[Vamps]

Housing is a seperate issue imho. In the 80's people did not complain when they were going up and up they only moan when they go down.
To me a house is a home and makes little difference whether ig goes up or down in value by a few%

Surly the only ones to worry are those who bought at the back end of last year with 110% mortgage, if they stay put they will get their money back in time.

Interest rises cos people are spending more, is this true?? I know of a major furniture retailer that is feeling the pinch big time.

just my 2d worth.

[Lazydocker]

The major concern for most people is negative equity. This is purely a paper based figure UNLESS you are either selling or can't afford the repayments!

I'm waiting for a call today to complete my re-mortgage which puts us perilously close to going into negative equity! But, because the figures are well within our budget, even if interest rates go up by close to 3%, I have no concerns at the moment. If house prices haven't stabilised and returned to the level they were at in January when we come to the end of the deal, that's when I'll be a bit concerned! In the meantime, we'll just make sure we save as much money as we can just in case.

On the topic of saving money, I must try and get hold of Jeremy today...