Religion and Ethics Forum

General Category => Politics & Current Affairs => Topic started by: Nearly Sane on July 11, 2023, 07:29:36 AM

Title: Mortgage rates soar to cusp of mini-budget peak
Post by: Nearly Sane on July 11, 2023, 07:29:36 AM

Utterly baffling. If only there was some way that interest rates were determined...


https://www.bbc.co.uk/news/business-66153812

Title: Re: Mortgage rates soar to cusp of mini-budget peak
Post by: jeremyp on July 11, 2023, 01:34:51 PM

There's nothing baffling about it at all. Mortgage rates are currently high because interest rates are high. Interest rates are high because raising them is the only tool that the Bank of England has to combat inflation.

Title: Re: Mortgage rates soar to cusp of mini-budget peak
Post by: Nearly Sane on July 11, 2023, 01:56:40 PM

Quote from: jeremyp on July 11, 2023, 01:34:51 PM

There's nothing baffling about it at all. Mortgage rates are currently high because interest rates are high. Interest rates are high because raising them is the only tool that the Bank of England has to combat inflation.

Sorry, my occasional tendency to the gnomic got the better of clarity there. My comment as regards it being baffling was sarcastic in relation to the MPs apparently not realising that the rise in interest rates would cause all this as if it were some kind of surprise.