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The March figure is due out this Wednesday.
After consecutive falls since October, the rate unexpectedly rose from 10.1% in January to 10.4% in February.
I of course hope I am wrong, but my forecast is that the rate won’t have fallen in March, it may even have risen a little on February. Although there are a number of measures in the ‘bucket’ to produce the rate, my forecast is based purely on garage prices which to me have been stable, and food prices. In the last month I have seen increases on many items in my local Morrison’s, perhaps profiteering.
I’m going for 10.6%. Again, I hope I’m wrong as all the talk then will be more doom and gloom for the country, increase in rates expected etc.
Despite my pinko political leanings, I’m a bit of a monetarist at heart and an interest rate that’s below the rate of inflation has never made much sense to me.
It was a catastrophe in the 1970s during the OPEC Crisis and it’s been a disaster in more recent times too.
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It's the "Millwall FC" of Point broadcasts: "No One Likes Us - We Don't Care"Agree with you Ian.
We had rates far too low and for far too long, and are reaping the fallout now.
In addition to inflation, in the past, and I’m talking of the period before the financial crisis, rates rises now and again used to check the increase in house prices and allowed to many more first time buyers to get on the ladder (also the lack of housing has contributed to higher prices in recent years also).
The govt seemed to give more energy into help to buy schemes which only helped keep prices up. They should have built more homes, plus the BoE should have raised rates from time to time as well to deter ‘bubbles’ being created, like we have now.
It’s a mess and will take decades to sort out!
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