|
|
UK INTEREST RATES STILL AT 0.5%
One has to wonder how long this low 0.5% Bank of England rate is going to last.
If the UK has high inflation as is likely during recovery after a burst of QE then the usual way to stop it spiralling out of control is to raise interest rates. The problem is with this scenario is that we still have many over leveraged landlords with too much debt and no method of making higher interest payments.
I would suspect it would lead to another catasrophe so the government might be too scared to raise rates. The problem then is that as the pound grows weaker due to inflation then they wont have any other options left.
What will they do?
If the UK has high inflation as is likely during recovery after a burst of QE then the usual way to stop it spiralling out of control is to raise interest rates. The problem is with this scenario is that we still have many over leveraged landlords with too much debt and no method of making higher interest payments.
I would suspect it would lead to another catasrophe so the government might be too scared to raise rates. The problem then is that as the pound grows weaker due to inflation then they wont have any other options left.
What will they do?
|
|
The door of the bathroom is now being analysed by the defense, roux is like a rottweiller
