Trivial things you don't understand/mildly annoy you

[Bob's Orange]

Currently, the main policy aimed at curbing soaring prices works by deliberately squeezing spending via higher rates.

The theory is if people have less to spend, it makes it harder for firms to push up prices.

Inflation figures suggest there is more to target.

So-called core inflation is at its highest rate for three decades - that measure includes some little luxuries including clothes, hotel stays and eating out.

That stronger demand may reflect savings built during the pandemic.

Or it may reflect some bigger wage rises than might be expected given the state of the economy - perhaps reflecting a shortage of staff, exacerbated by Brexit.

But, raising interest rates isn’t a precise science. With only 15% of home loans on variable or tracked rates now, it takes longer for changes to filter through, the majority of mortgage holders will only feel the squeeze when their fixed-rate deals come to an end and they have to move to a new rate.

So there’s a risk that rate rises could go too far and cause the economy to shrink and jobs to be lost, when many incomes are already suffering.

According to the BBC Economics correspondent.

[horlock07]

Net zero mania is expensive.

You think that's expensive, the costs when we are trying to counteract the planet frying and big swathes of coastal areas are under the sea is gonna blow your mind.

Currently, the main policy aimed at curbing soaring prices works by deliberately squeezing spending via higher rates.

The theory is if people have less to spend, it makes it harder for firms to push up prices.

Inflation figures suggest there is more to target.

So-called core inflation is at its highest rate for three decades - that measure includes some little luxuries including clothes, hotel stays and eating out.

That stronger demand may reflect savings built during the pandemic.

Or it may reflect some bigger wage rises than might be expected given the state of the economy - perhaps reflecting a shortage of staff, exacerbated by Brexit.

But, raising interest rates isn’t a precise science. With only 15% of home loans on variable or tracked rates now, it takes longer for changes to filter through, the majority of mortgage holders will only feel the squeeze when their fixed-rate deals come to an end and they have to move to a new rate.

So there’s a risk that rate rises could go too far and cause the economy to shrink and jobs to be lost, when many incomes are already suffering.

According to the BBC Economics correspondent.

This is quite an interesting counter opinion, TL:DR the tools presently being used to try and address the issue are making it much worse as they are based upon economic theories from the 1970's which no longer apply today. https://threadreaderapp.com/thread/1671413701247655936.html

[Bob's Orange]

Interest rates hiked to 5% then.

[Audrey]

You've really bought into every conspiracy theory huh?

Why are we paying for high energy costs when our CO2 emissions are lower over decades. What’s the point when China is putting mega amounts out.

[Nemo]

Why are we paying for high energy costs when our CO2 emissions are lower over decades. What’s the point when China is putting mega amounts out.

This isn't the same point though is it? Our inflation isn't being caused by decarbonisation, we've been doing that for years and the inflation rate has only gone bonkers in the last ~12 months. You're blaming decarbonisation for something which it is, at best, a marginal contributor to.

The price per kwh of non-carbon emitting energy sources has been falling for some time. What has gone *up* in price is oil and gas. Neither are the sole contributing factor to rampant inflation as it currently exists.

[horlock07]

Why are we paying for high energy costs when our CO2 emissions are lower over decades. What’s the point when China is putting mega amounts out.

Because energy costs, for the purposes of the international wholesale market and by extension the price cap, are driven mainly by the price of gas and oil, hence why it went through the roof when oil and gas went up (despite us producing a shit load of green energy in this country), this is also the reason why when Rees-Mogg and his ilk bang on about fracking bringing costs down they are talking absolute bollocks.

The more pertinent question that possibly should be posed at this stage is why despite wholesale prices dropping back near (if not completely) to pre spike costs why the retail prices haven't followed....

Interest rates hiked to 5% then.

Not sure what they expect this to achieve, the last 12 rate rises don't seem to have stopped inflation  so why this one....

[Nemo]

Not sure what they expect this to achieve, the last 12 rate rises don't seem to have stopped inflation  so why this one....

Governor Melchett of the Bank of England had this to say "MEHHHHHHHHHHH"

[Batch]

how are you measuring 'made no difference'.

it came down a bit. but what would have happened had it not been done at all?

[Ginginho]

Just drank my litre of laxative in readiness for tomorrow.

Think I’m going to blow any minute!

Hope all went well.

I have the same next Wednesday.
It's actually a sigmoidoscopy, which is a "colonoscopy lite" from what I can gather.
I have to have an enema, which i've never had before, but it has to be better than the gallons of disgusting laxative you have to drink!

[reeves4england]

Looking forward to switching mortgages in August 😢

[Bob's Orange]

Looking forward to switching mortgages in August 😢

Ah fuck, that's awful to read Reeves! I just hope that this raise has a drastic impact on inflation and we may get a reduction before August so you aren't hit so hard.

I feel bad now that I was complaining about our remortgaged rate earlier this year.

[horlock07]

Looking forward to switching mortgages in August 😢

It's crap isn't it, not sure these rate rises are actually being passed over to savers much either!

I just hope that this raise has a drastic impact on inflation

I hate to be a grumpy pessimistic twat but I just don't see it happening, the whole method just seems to be fuelling prices rises as everyone be it business or personal is in debt of some sort and this is just making life worse for people.

[Batch]

on the plus side I have a fixed mortgage into it ends.

on the bad side I will be unemployed next month.

[Wobbly Bob]

It's crap isn't it, not sure these rate rises are actually being passed over to savers much either!

No.

Might be some decent rates to be found if shopping around, but saver account rates from the big banks are shocking.

[Batch]

I was looking at instant access, unlimited withdrawal.

seems you can get about 4%, might be only for a year. it's not bad