MrSmith Posted October 6, 2011 Share Posted October 6, 2011 No, but it'll take money out of the economy as more of people's income will go on paying the interest when they could be spending that money on goods and services. This will have the knock on effect of costing people their jobs. There are more savers than mortgage holders so the savers would have more money to spend. A young person wanting to buy a house would welcome an interest rate rise because the money they have saved for a deposit would stop reducing in value and higher mortgage cost would help to reduce house prices. Link to comment Share on other sites More sharing options...
wednesday1 Posted October 6, 2011 Share Posted October 6, 2011 Shadow chancellor Ed Balls on the news just now regarding the Bank of England's MPC committee's decision to hold interest rates at 0.5% and to go with £75 billion more quantitative easing. Apparently he said on the BBC that QE is bad and interest rates are too low. Bearing in mind that interest rates have been at 0.5% for 31 months and that we had a bigger dollop of QE in 2009 (£200 million), Ed must think that the average voter is either [a] Very stupid Has the memory of a stunned goldfish He's probably right. Howdo Baaaaaaaaaaaarnsley Bill! Pigeon racing season over now? Can you provide a link to Balls saying what you claim? All I can find is a comment from him saying 'the Govt is getting desperate now and this seems like Plan B'. Link to comment Share on other sites More sharing options...
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