They finally did it! The Bank of England’s Monetary Policy Committee raised the base rate from its emergency 0.1% level to 0.25%.
That came the day after inflation rocketed to 5.1 per cent – and is forecast to keep rising – and in the week that the International Monetary Fund warned the Bank of England against ‘inaction bias’.
Markets were cheered by the rate rise and economists were broadly welcoming too, yet the general consensus is that it will make little difference to the inflation Britain is suffering.
So, why raise interest rates and was this the right move as the nation stares down the barrel of yet more (potentially overcooked) Covid disruption?
On this week’s podcast, Georgie Frost, Tanya Jefferies and Simon Lambert delve into the rate rise, ask whether it was the right move but maybe for the wrong reason, and look at why inflation is soaring and when it may abate.
The team also discuss how this will affect ordinary people and whether it will add to the cost of living squeeze hitting everywhere from the petrol pump, to your heating and the supermarket aisles.
Tanya gives an update on delayed state pension cases and her investigations into this and whether the generation in their late 40s will have to wait longer to retire.
And finally, it’s nearly Christmas and frantic present buying is the order of the day, but if you were going to give a financial gift to a child would you give Premium Bonds, shares or bitcoin?
