Savings rates are on the rise but even if you do find a best buy, don’t get complacent because there’s an inflation train thundering down the track.
The problem is that while traditional monetary policy theory dictates that should lead to interest rates rising, we haven’t operated under normal conditions since the financial crisis.
CPI inflation has already reached 3.2 per cent and even with savings rates on the rise they are nowhere near that.
The Bank of England’s boss Andrew Bailey hinted this week that base rate may need to rise sooner than expected if inflation sticks around, but the line that it will be transitory is still largely being stuck too.
Plus, the crimping effect of higher prices on essentials – from petrol, to energy to food – may take the heat out itself without a rate rise coming into play.
On this podcast, Lee Boyce, Georgie Frost and Simon Lambert look at why savings rates are rising, whether interest rates will follow suit and quite how long it might be before we get back to a normal situation of savings accounts consistently beating inflation.
Simon discusses whether attack may be the best form of defence in the form of stock market investing – and why the ‘just buy bitcoin’ comments shouldn’t be entitely heeded.
Plus, could you or would you want to live off grid? What would it entail? And would it actually save money?
The inflation train appears ro be gatherine pace, so should rates rise?
