Why is the Bank of England raising interest rates into a recession?
Aug 05, 2022, 10:44 PM
The idea of the Bank of England raising base rate by 0.5 percentage points at the same time as warning about a long and painful recession would have been unthinkable a year ago.
But things have dramatically changed and central banks are desperately trying to get a grip on runway inflation that just seems to keeo getting worse.
Base rate has risen from 0.1 per cent in December to 1.75 per cent now and is set to keep climbing, but why trigger a recession to get inflation driven by outside forces under control.
On this podcast, Georgie Frost, Tanya Jefferies and Simon Lambert discuss the rate rise and potential recession and what it means for borrowers, savers, the economy and our financial near future.
Also on this episode, how can you prepare for the mortgage crunch as rate rises hit homeowners and Simon gives his tip on how to take the temperature of the property market... by looking at what's not selling.
And Tanya gives an update on two important pensions issues: women's lower retirement savings and how to keep more of your pension pot out of the taxman's clutches.
But things have dramatically changed and central banks are desperately trying to get a grip on runway inflation that just seems to keeo getting worse.
Base rate has risen from 0.1 per cent in December to 1.75 per cent now and is set to keep climbing, but why trigger a recession to get inflation driven by outside forces under control.
On this podcast, Georgie Frost, Tanya Jefferies and Simon Lambert discuss the rate rise and potential recession and what it means for borrowers, savers, the economy and our financial near future.
Also on this episode, how can you prepare for the mortgage crunch as rate rises hit homeowners and Simon gives his tip on how to take the temperature of the property market... by looking at what's not selling.
And Tanya gives an update on two important pensions issues: women's lower retirement savings and how to keep more of your pension pot out of the taxman's clutches.