No big surprise that the BoE increased bank interest rates from 0.1% to 025% as it admitted it was completely on the back foot with the way the Consumer Price Index has spiralled out of control over the last 6 months, and gone way over the BoE’s forecast of 2% by the end of 2021. And is currently at its highest rate since September 2011
However, the BoE warned that further interest rates were likely if inflation is not capped, especially in an uncertain economy of labour and material shortages in certain sectors, of continual covid worries, increases in National Insurance Contributions and taxation, higher energy & fuel bills and a steady rise in unemployment in skilled industries.
A rise in interest rates should be very good news for hard-pushed savers. But we all know this is not always the case, especially with CPI inflation currently at around 5.1% (11/2021), which is a jump of almost 1% on the previous month, and could rise to as much as 8.3% by mid 2022 before levelling off.
Inevitably it will be the borrowers who will be the main target, especially those coming to the end of a fixed-rate, or are on variable or discount mortgages. The ripple effect when the banks put up their rates on credit cards, loans and mortgages could be quite devastating, especially for those who have overstretched themselves.
Of course it would help if we had a proper Tory PM at the helm, rather than dithering Boris, who has already lost a by-election, and has 100 backbenchers on his back, with more to follow if he doesn’t get a grip of things fast.
In the interim 2022 is going to a be a cunt of a year for most ordinary people, especially if interest rates rise to 1% as has been rumoured. (And don’t forget that’s the bank base rate, not the rate the banks charge consumers, which is often quite a lot more!)
Inflation
Interest Rates
Foreign Debt
Unemployment
Energy Bills
National Insurance and direct/indirect Taxation
Labour shortages
Brexit failures
Uncontrolled Immigration
Wokeism
By-election defeats and a disillusioned Tory grassroot support
Backbench revolts
Unrealistic & hugely expensive Green policies
Covid uncertainties
A Crumbling NHS and incompetent government Departments
… yes, 2022 is going to be a cunt, but none of the above will be enough to shift the biggest cunt of all out of No. 10!
Nominated by: Technocunt
