Bank of England raises interest rates for fourteenth time in a row
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- Опубликовано: 2 авг 2023
- Bank of England interest rates went up for the fourteenth time in a row today, to 5.25 per cent, meaning more pain for mortgage holders across the country.
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But there was better news on prices, with the Bank forecasting today that - as pledged by the government - inflation would fall by half by the end of the year, to below 5 per cent.
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This country is finished. Never in my life have I seen politicians talking about recession as though it’s a good thing. There is no future here for the young.
this country has fucked over anyone born after 1970 all to keep boomers happy.
Quit being so dramatic😂
😂😂
@@adiintel1 it is finished...for the ones who dont run their own businesses...entrepreneurs are fine
Recession can be good though. It's the government's fault by trying to delay it. A recession gives you more purchasing power and rent and mortgage costs will go down.
It'd be nice if the bank of England diddn't refuse to investigate profiteering's effects on inflation.
"The poor have too much money. No more questions!"
This reminds me of how the Roman empire fell
People are asking for higher wages because they can’t afford to live on £17-£20k a year with cost of living so high. How dare rich toffs say they “understand”. No you don’t.
Exactly!!.. this interview makes me sick.. its all BS. its all a plan. None of this is an accident. Squeeze the working and middle class.
I'm tired of the constant repeating "I understand".
How about we remove all forms of taxation so you get 3x the purchasing power and you get to take home thousands more a year?
@@Dehydratedpencil How about we don't do something that mind numbingly stupid.
@@Krytern How is it stupid? It's a perfectly sensible way to get a pay rise.
People who work for nothing, miserable wages, how could inflation go down. On the other hand, the gas, electricity, food companies make billions and billions 😢😢
Bing! Got it in one!
Can't understand why the bank of England's refusal to even investigate these obvious sources of inflation (unless "don't talk about greed club")
@@samgrainger1554not defending the bank but they have no power in that domain is the tory government who can use a proper windfall tax on energy giants but they refuse due to conflict of interest.
@@robertovienescu8580 oh, for sure the gov is the original source of these issues (or not adressing them on purpose).
But BOE refusing to investigate profitering leads them to have to conclude that the poor have too much money and thus try to "fix" that whilst giving the gov a smokescreen to allow profiteering to continue, and allowing the profiteers to continue.
They grew too big to be liable.
Well... People love to be bullshitted and rampant capitalism
The UK wages have stagnated for 13 years. The average uk worker is £ 11k worse off than our European neighbours.
The stagnation point is true. The second bit sounds wrong. What source is that?
@@dominiclawson5362 just type average wage UK and average wage France 2023, without further digging into the subject, more or less 10K euros difference, type Ireland and the gap is almost 15K euros
Last time I looked the uk was in the eu 13 years ago lol so can you tell me what being in the eu would stop this when it did not the last time you were in the eu.
@@dominiclawson5362 even just looking at the UK figures, between 2000 and 2008 UK wages grew at a very consistent rate. if they had carried on growing at that pre 2008 level since then the average brit would be earning around £9k more a year than they are today. Of course its always possible with better economic management wage growth could even have been higher than the pre 2008 level. Its not like things were perfect back then. But instead it just stopped.
@@terryj50 Sovereignty was supposed to solve our problems, wasn't it ya dolt.
The way he looks at her… as if saying… lady shut it, you’re making too much sense and I can’t keep waffling if you keep making sense
England is done. There really is no way back after this. Might as well start looking at moving to other countries as a financial refugee.
moved back to africa better life and cheaper cost of living, lots of uk immigrants scrambling back home now
"Unlock the idea of it coming down" nothing is going to get cheaper!
The price for excessive amounts of stimulus and zero interest rates from 09 and onwards.
just print even more unbacked £s ?
He looks at the interviewer with contempt
The same contempt he has for the population
Odious liar
Inflation is indicative of a failing system
And yet C4 decided not to press Hunt on green stealth taxes hidden within your energy bills to reach net-zero and instead raise the Brexit boogeyman again. Call it poor journalism standards.
I understand the difficulty of that he says whilst being mortgage free and a multimillionaire
Absolutely 👍🏻 😢
Multi millionaire.
Something we should all aspire to be.
@@harveysmith100multimillionaire is correct.
Loved watching him squirm , you can tell he doesn't even believe his own lies.😂😂
I don't know which him you're referring to, but they are all equally full of s**t.
Why don’t you tell us about Jeremy Hunt, having absolutely no qualifications or experience in any financial role in his entire professional career, yet still, he’s in charge of all the money in the country.
I think we need to be reminded of the absolute basics, Channel 4 News.
To be fair, you could say that about most Ministers and their briefs; just shows the importance of having a well staffed civil service in place to give them all the guidance and information so Ministers can make more informed decisions and then try sell their decisions to the public
Just like all government in charge of healthcare. None knows a thing about it.
Targeting inflation is a red herring they are just dumping the cost of the recession to the poor ordinary working public. instead of taxing the record breaking profits of energy compaines and supermarkets who profited off of higher prices.
That's the Bank of England for you. Tony Blair giving them full autonomy allowed the sitting government a way of passing the blame.
Spot on.
The only reason they are making record breaking profits is because the government pass laws and regulations to keep the market monopolised by these companies.
If the government was removed tomorrow and EVERY SINGLE regulation was abolished, prices would plummet, because there will be infinitely more competition, because costs to enter the market would be extremely low.
These companies aren't the problem, they are simply taking an advantage of a situation that the government have provided them with.
Didn't notice anything improving in my sphere of misery. I'm now priced out of every market that manages to still exist. Can't see the few that remain lasting much longer. 😢
What no one is mentioning: entire GDP is being spent paying the interest on national debt
In section 1 Hunt boasts about inflation going down “according to plan” in section 2 boasts about giving out loads of free money… Very questionable plan.
His strategy is called fighting fire with gasoline, make everything worse so the middle income household have to face a higher interest rate for longer
The increase in money supply caused by the promised £3000 financial assistance will have a negligible impact on inflation, which is mostly due to increased costs, supported by demand driven non-discretionary spending.
Regardless, this financial aid won't be enough to cushion households against the sustained impact of a year of high inflation followed by a rapid increase in mortgage rates.
Hunt's plan is indeed questionable, but because this government intervention is too little, too late. As he admits in this interview, the UK is only starting to do now, what other countries did a year ago.
Consequently, the economy will continue to struggle and living standards will keep declining.
If Labor win the 2024 election then this becomes their problem.
The incompetence of the politicians are staggering. The effects of the rate hikes has up to 18 months of lag. So just chill with the rate hikes. The great financial crisis will be a like walk in the park compared to the upcoming recession.
Increased rates for 😂 Brexiteers only, please!
On my savings.... Lovely 👍
@@JamesSmith-qs4hxyeah, but inflation is higher than any interest in savings- so the money is worth less even though your savings grow.
and tory voters. let the idiots pay for their decisions.
What on earth has Brexit got to do with it
Many Brexiteers are mortgage free !
People who have borrowed too much have caused the increase in house prices. Now they want people who didn’t to bail them out…..
100% agree, people spending or rather lending above their means
Why did the family wait until the fixed rate ended before getting a new deal. Could have done it 6 months ago would have been cheaper
Sadly many people are financially ignorant, even though they may actually be intelligent.
Part of the problem is that we have short term mortgages. Really we need to regulate that lenders should provide 25 year fixed interest mortgages. This means that an increase in interest rates would affect new house purchases, but wouldn't put current home owners in difficulty.
I would say it's the opposite. If you are going to use interest rates to address inflation the whole point is that raising rates increases payments so people spend less. It is better for this to be distributed across all mortgage holders rather only a few when there fixed period ends or when they move house. It would be better to ban fixed rate mortgages.
Better still to take the money from the people who can most afford to pay it, people on higher incomes. Raise income tax instead of raising interest rates. Use the extra money to help reduce demand for fossil fuels by insulting all houses.
@@adrianthoroughgood1191 The problem with raising the interest rates on properties people already have mortgages on is that it actually increases inflation (because people have to continue to pay the higher mortgage rate). It also increases the cost of people living in existing buy-to-let properties. If everyone has full term fixed rate mortgages, the interest rate rise only affects those moving house, and has a downward pressure on house prices, which compensates for the rise of interest payments. As for raising taxes, this needs to be done on company profits and dividends and windfall taxes on oil and gas with less loopholes. These drive inflation as much as or more than wage growth.
Spot on, bankers will never agree because this puts them at risk.....
25 year fixed mortgages are a lot of risk for Financial Institutions in a low rate environment.
America showed us in the 1980s with the Savings and Loan Crisis that banks will go bankrupt when rates rise leaving Tax Payers left with the bill.
We could go back to the time, over 60 years ago, when you could only purchase a home with 35% down payments then banks will be willing to take the risk without Tax Payer Guarantees.
@@mt8474 If the banks are sufficiently capitalised, the risk to the bank would be much lower. Part of the problem is that they are lending money they don't have.
Try to rent 3 bed house now in Watford area 2500£ a month
Wtf
@spencerosei2616 yep unfortunately I'm currently in that position! Was renting a 3 bed house for 1700£ but my landlord informed me that he is selling the house due to interest rates increase and most of the landlord are doing the same so there isn't many rental properties so that is bringing prices up combined with interest rates
@@J_I_Was in a similar position in Plumstead was paying £1800 for a 2 bed , the landlord has hiked it up to £2600 since october 2022. I have given my notice and will look to move by october 31st 🤬
@spencerosei2616 outrageous we need some kind of rent controls.
It's crazy I can't afford to get a mortgage but I have to pay 2500£ rent 🤦
What an absolute car crash of an interview from Hunt. Reducing inflation by giving heaps of free money, and saying that he disagrees with the EU and US strategy to reduce inflation but they are doing better than the UK. And when told Brexit is a major reason, the only one that's exclusive to Britain, he says no. Wow.
Absolutely delusional and thick as mince.
I think most people have been discussed by profits going up and deciding it's enough and asking for their fair share of pot to live a good life.
Sometimes seems like the country I love is going in reverse… ❤
always does with tories in charge.
Yeah it most certainly is...
We ALL fell like that, in ALL the nations..... You think things are better in the EU, or the US? Or Russia, or China?
@@monopalle5768 Things are better in the USA, as a UK citizen I can vouch for that. 30 year fixed interest rate at 3.125% here. No way is that available in the UK. We have our own energy supply here, and the US does not import 50% of its critical food needs.
@@JohnnyWitney My point is, in EVERY nation, our news is filled with stuff like this.... We are all worried, all the time, and our economy is always in collapse, and we always face crisis and threats....
In the US, they think leaders eat babies and plot coups.
In Denmark and Sweden, we think a protester burning the quran is a threat to our national security, and requires political intervention.
-And in the middle east, they think they need to boycott Denmark and Sweden, to preserve their otherwise threatened world view....
Environmentalists think we are about to drown in rising oceans, vegans think meat is murder, etc etc etc.....
EVERYONE thinks they are on the brink of extinction.... It's the human condition.
Quote from BOE:
“The price of tackling rising inflation is worth paying”
Aye this is true, but the wrong people are paying for it as usual. 😢
And when it doesn't work, what with the people he's sacrificed in vain? An apology?
Nope. The correct and expected people are paying for it. Inflation is occurring because there is more cash and demand in the market from average people, than their is supply and productivity.
The ONLY solutions are that the average person buys less and is more productive at work. That's what the interest rates are about, ensuring you have far less disposable income to spend on luxuries to pull the cash and demand out of the market.
@@tjmarxand we're not going to talk about the share going to profits? Even though they are through the roof.
FYI the BOE refuses to investigate this source of inflation. "The poor have too much, that's that. No more questions!"
@@samgrainger1554 🤦 Mate, you're making a fool of yourself. High profit for some sections of an economy are normal and expected things during high inflationary events. They don't cause high inflation, they're a symptom of high inflation. 🤣
@@tjmarx so you're saying that higher than inflation rate profits.... don't? cause? higher? inflation?
(Investigations find that profiteering is the major driver of inflation. The BOE refuses to investigate it)
'The pain of rising interest rates is ending... time to lower your wages!' FFS these people.
Hunt was no good at Health minister either.
Er wrong. Prices aren't going up because people are asking for excessive pay increases. Wage demands are chasing prices.
Hund did not respond why exploring oil & natural gas is a no no in Surrey vs North Sea: his response was akin to “because, North Sea” (North Sea is Scotland’ waters)
The oil ran out in 2014.. didnt it?...
@@markwilkie3677
Most probably the easily extractive oil ended in 2014 (I don’t know the reserves).
But when price of oil goes up significantly, or when there’s a restriction on suppliers of oil (say, some places you won’t be buying), extracting at even higher costs gets cleared by companies.
Note also oil companies usually gets big subsidies from governments so their costs lowers, and in recent past money was cheap (debt fueled oil & natural gas new extracting companies).
@@lv3609 Yeah, I`m referring to what the Scottish people were told before the `remaining in UK is the only way of staying in the EU` referendum.
I think everyone already knows that the North Sea is in Scottish waters.
Why is it called the Bank of England when it’s for the whole UK?
Why is it not called the bank of ✡?
It's not the bank of England when the rothchilds own it
Good point lol. Guess it's because is the biggest in population and economy.
Technically they are separate currencies. English Pounds are issued by the Bank of England, in Scotland it's various private banks.
and the Irish do something. You do end up having an argument trying to spend Scottish Notes in England.
They aren't the whole of the UK
On top of this, Scottish Power just increased my heating rate by 31.66%! Just in time for winter.
I bought my first house in the 70's when inflation was at 16%, I survived so will you
The Bank of England is supposed to be planning long term rather than reacting month to month.
They were 0.5 for what like 15 years? A bit ridiculous
During this time many people who could have easily afforded to overpay their mortgages didn't, now they are paying the price.
I think raising interest rates is pro-inflationary because the cost of borrowing soars and folk naturally seek improved wages. Companies raise prices to cover the higher overhead and you are back to square one. What I as a voter anticipate is a Government and BOE with distinctively competent people managing our economy and Banking sector, absolutely nothing gives me the impression we are in safe hands. My interpretation is the UK is seen as if it were treasure island by the big corporates and the current Government are there to facilitate that.
Enjoy another 13 years of the Tories, UK. You guys choose it and you got it
Let's get labour so we can spend more!
Not all of us voted for these Tory parasites!
@@allykhan8594 like I said. Enjoy 😊
Labour have the exact same net-zero policies that are pushing up UK inflation, so don't try that one. Labour passed the _Climate Change Act of 2008_ when they were last in power and an outgoing Treasonous May ammended their Act by including a net-zero target for 2050 that all Labour MPs voted overwhelmingly in favour of. Our stubbornly high inflation is linked to our green stealth taxes on our energy bills which Labour would also have included as it's their policy too.
@@SmartCookie2022 It is the Tories who won't tax the energy companies in a way that allows the poor to heat the homes, yet they allow billions in profits going to their shareholders (which includes these tory ticks suckling of the life blood of the country). As the younger voters come on line I think we will see the end of Tory rule, hopefully for good, the electorate have learned their lesson, as we can all now see these liars and thieves for who they really are.
But why are they raising interest rates so much when inflation is supposed to be supply-side and not demand-side? These rate rises are both cruel and pointless
yeah but then lots of tories can cash in on buying our repossessed houses like they did in the 80s.
They are raising interest rates so banks can make billions in profit....and the Tory share holders benefit....easy....and that's what the British people vote for...that's what the British people want ...more money for rich people...
When supply exceeds demand prices drop, not sure what you do not understand about that…?
@@kanedNunable For every loser there is always a winner and I know which I would rather be !
If only someone saw this coming a few years ago when they were over stimulating the economy!
"Crush inflation, drive prices before you, and hear the lamentation of mortgage holders"
I don't know how homeowners will handle the mortgage rate rise but I am in favour of interest rate rise because the food price is on the roof. Every single fresh and packaged items gone up four times. This is ridiculous.
my mortgage has doubled. food prices are due to brexit and tory policy, why should that cost me 3grand extra a year?
@@kanedNunablewell no Tory will admit to Brexit having any impact....they seem to have agreed to avoid the B word
It's a joke I'm all for tackling inflation but this isn't fair. I'm in council house so really hasn't affected me but friends and family are suffering and it's so wrong.
@@HA05GER Let your friends and family sell their house and move to council house as well as housing is one of the basic needs for human its not a speculative instrument. Landlords gone greedy from 2015 onwards and I want all of them loss their value in their houses so they won't use it as a money making machine again by milking the rent payers.
Mortgage interest rates were 15% in the early 90`s, imagine what that would do now.
blaming the increase in wages for the inflation. total BS
Well can I cry, get an interview on the news and get my rate slashed in half please
UK is reversing
How did she get 4.24%?
Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank ❤
BOE "you're being paid too much"
"Shareholders, you're golden, keep taking all that money"
Im sure you will have a Pension Fund into which you pay into each month. They invest your money in many things particularly shares, so you are also benefiting.
@@jjefferyworboys8138 that is not connected
Where does the 5.5% the Bank of England charge to the national banks ect... go?
Rent rises by £150 a month while inflation drops and I save 3 pence on a jar of jam
There's a reason why Hunt rhymes with c#nt.
Lack of house building have raised house value to a record high purchase amount. That's the most highest expense in everyone's bill and beating around the bush don't help!
When I bought a property with a mortgage, I didn't realise that my debt would be used as the primary lever against inflation. Yes my mortgage payments go up to balance the entire UK economy. Why?
Wish the interest rate can go higher. It’s good for the savers. Savers should be compensated.
Rachal Reeves wow what a deep voice
Stop printing money...
Of they destroyed some of the money they are hoarding, but still keep more than what they would ever need, that would help inflation too.
People have had too much money in their pocket For too long, ridiculously low interest rates for 15 years, people have spent beyond their means without worrying about interest rates which throughout history have always fluctuated. Now through their greed they can’t afford their mortgages because they’ve borrowed to the hilt.
Yes, they should stop buying family homes. Disgusting people.
The country is badly managed . House prices should never have been allowed to increase like they have done over the past 20 years. Falling interest rates are the main reason they have gained so much fake value .
and lets indonesian buy more uk tea until sold up
Interest rate increase… you are killing me! Forget inflation my mortgage is braking me.
I am confused as I don't seem to have received my £3000 that Mr. Hunt mentioned.
Oh didn't you see it? It was announced on the side of the bus, on the other side was the 350million back to the NHS😅😂😂
It's from the government paying a large part of electricity so your electric bill isn't as high. That's what the cap is.
That's because the money was just used to prop up the profits of oil and gas extractors.
Making housing cost more is the dumbest way to cut spending. Pay hasn't been increasing but its still whats blamed for inflation. The only thing that when up was bankers bonuses. Where is the call to cut bankers pay, not only the poor.
Usury used to be banned in Europe. What happened?
THEY took a LOAN without knowing the interest rate.... It was a gamble, and if you had won, you'd be LAUGHING....... So you CHOSE this for yourself.
In my 2nd year of teaching in 2008 my salary was 24k , that would be worth 40k today. 2nd year teachers today earn about 32k, about 8k less !! The numbers say pay rises have been below inflation for years, yet you are expected to pay more with less. 🤬🤬🤬
£24k in 2008 = £37k today, not 40.
We need better quality teachers.
@@incandescentwithrage I used an online calculator which quoted 40k which is not far off, what we need less of are internet trolls like you, that would be great! As for quality teachers, im as good as they come, my track record would back that up not a fool online who's opinion holds no value.
Wow the English are getting richer and richer. No wonder they are called British Royalties
Thank god Dorris didn’t destroy Channel 4 and specifically their news 🙏🌀
These are historically normal interest rates. Whoever recently got a big mortgage on a variable rate is a fool.
I am seeing the interest rate hitting 6.5% and property price going down 35% at the beginning of the next year.
Base rate will peak @ 5.75%, a viewed shared by most leading UK Bank economists. As a saver I wish it would go higher !
Inflation goes down but we going to keep the interest high hey?... Wtf
They should be more or less equal, so until inflation falls below base rate don't expect to see any downward movement.
Mine has gone to 7.55
£1698.70 A MONTH NOW JUST A BIG RIP OF
Profiteering = inflation - nothing to do with wage growth, wages have not grown in the UK for well over a decade - even the wage increases this yr are below inflation (a real terms paycut) Andrew Bailey doesnt know what hes talking about, but hes educated in history not economics!
What does all banks do with extra money 🤑🤑🤑🤑🤑🤑
Good interview at the end, calling him out on hiding behind misinformation and lies
It's not the home owners who suffer most ! *It's those who rent on this unregulated property market !!!*
Everything has been too sheap too long and now we all are paying for it. I saw it and delt with my dept
The Oil n Gas licences, are within UK territorial waters and therefore terms could be in benefit to the Country like UK Sovereign fund or a indefinite levy that is used to specific benefit of UK public services.
There are caveats that could easily be established.
Asset holders do not feel inflation because they have sufficient earnings from the assets they own . So manufacturing a recession to drop wages living standards for the many is the answer . Enjoy the pain for the many not for the few.
It involves rich being richer and poor being poor. Nothing in the middle
Bank of England is like cha ching ,,😂😂😂😂😂😂😂😂😂😂🤪
We are not that stupid sir !
Inflation is going little bid down can not be compared to the additional £4000 a year mortgage burden .
so it is the average working person's wage negotiation" that perpetuates inflation, but greedy corporate bosses who are profiting in ever sector from the misery of the people, are not to blame.
They will see it X 14 times in a Row.....I'm very Concerned
its not working, so lets keep doing it more!
why are homeowners being targeted so heavily?
They aren't, it's only a small portion of homeowners with large mortgages who are effected and they are simply collateral damage.
More people own their homes outright in the UK than have mortgages, did you know this ?
The pain is neccessary for a better economy going forward.
Bailey is a waste of space.
Prices still going up in whole sale 😂😂😂😂
"The basic annual salary of a Member Of Parliament (MP) in the House of Commons is £86,584, as of April 2023." People earning 7k a month telling people they understand how tough it is, and how generous it is to offer an extra £250 pounds a month to the peasents
This is a joke, from one person that takes a half million salary annually.
The Manager of Manchester City FC salary is 40 times higher, with a fraction of the responsibility.
Why Jeremy Hunt not take a pay cut then?
0:40 how can he say that when he's just put them up Bailey is a total clown!
Its prices not wages , but we cannot control profits thats not cricket .
Given nothing to single people that don't own a home
Single people have always had a rough deal irrespective if they own a home or not.
Inflation is affected by everyone - the punishment is only felt by a small portion of house hold mortgages, the people feeling the inflation + mortgage and credit pain are the most vulnerable.
BoE and Cons have screwed it up completely.
Sadly the most vulnerable are always those who feel the pain first and hardest.
How can 5% be worse than 9% inflation?
Its not brexit its the food imports
She did great to get a fixed rate of 4.24%.
1. Don't talk about greed club.
My home's gone up in value by 15% a year for the last thirty years. They say that inflation is bad, but I say house inflation rocks big time. My buddy says he ain't never gonna buy a house coz of the 5% thing. I tell him it's more likely coz of the 450% thing.
It doesn't rick if you ever want to upsize your house. If both your house and the bigger more expensive house you're looking at have both increased at the same rate, the gap in affordability between the two of them will have increased
How about the government tax corporate profits....
“I understand the difficulties of that” no you don’t 🤬 profiteering corporations are the cause- monopolies been abused 😔