Bank of England hikes interest rate to 5% in shock move
Business / Thu 22nd Jun 2023 at 11:30am
UK interest rates have been raised to 5% by the Bank of England, as it battles to control soaring prices. reports the BBC.
The Bank has increased rates to 5% from 4.5% – the 13th increase in a row.
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The very low interest rates were an aberration due to the credit crunch & banking crisis of 2007/8 and the subsequent quantitative easing. These low rates were never sustainable in the long term. Mortgage rates are now getting back to their historic average. That's why people like me have for the past 40 years advocated large scale council house building to give workers security of tenure. The many who ignored us thought a speculative housing market was wonderful. Now weep in your beer and stop moaning.
Sorry, I should have said weep in your Prosecco.
David it is better to have good houses at a cost workers can own, that way they can build up wealth and are not beholden to anyone. Interest rates returning to thier norm are good, it is now going to be interesting to see who was living a life style they can afford and who cannot.