this post was submitted on 10 Aug 2023
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[–] philluminati@lemmy.ml 1 points 1 year ago* (last edited 1 year ago) (1 children)

We will live in a mad world that companies would up their prices and the government responds by increasing mortgage rates to push people into poverty so they can’t buy those companies things and is willing to cause a recession and “kill the economy” despite the economy being the thing that everyone’s effective lifeline is attached to… and crashing it is undoing everything you’ve wanted for the last 20 years.

So, having put up mortgage rates (which is fucking useless because only 25% of properties have mortgages, and it has a delayed effect) the bank, who could have used interest rates to help savers by giving away free cash but chose not to (the other side of the interest rate coin) are now reducing mortgage rates to be competitive, undermining what the BOE was doing in the first place. Okay then.

[–] wewbull 0 points 1 year ago

We will live in a mad world that companies would up their prices and the government responds by increasing mortgage rates to push people into poverty so they can’t buy those companies things and is willing to cause a recession

You're right, but that's the accepted economic policy in the situation. Increase interest rates to make debt more expensive and remove buying power from the population because too much demand drives prices up.

It's GCSE level economics, but seems to be the only thing those in power know how to do. It's quite shameful really.