Risks of Inflationary Interest rate rises

Risks of Inflationary Interest rate rises

9:13 AM, 21st December 2021, About 4 weeks ago 6

Text Size

As I am sure you are aware, it was announced on Wednesday that the consumer price index was 5.1% for the year to November, a level that the Bank of England predicted the economy would not reach until April next year.

The prices of fuel, clothing and footwear rose the fastest. Reduced supplies were one cause, with a tenth of groceries either unavailable or low in stock.

As a result, on Thursday the Bank’s monetary policy committee (MPC) voted 8-1 in favour of raising the base rate by 15 base points to 0.25% from its record low of 0.1%.

Given the amount of money that the UK Government has had to print during the last 18 months of the Pandemic, I don’t think anyone is surprised that we are seeing inflation, which could then lead to interest rate rises.

We will see interest rates continue to creep up during 2022?

What will the impact be on you, your investing and the property market as a whole?

I have just recorded a new video for you all about this.

If you want to learn how to make the most out of your property investing in 2022, register for this brand-new property training with Simon Zutshi, just click here now: https://property.isrefer.com/go/POOpt1/property118/



Comments

by Paul landlord

14:13 PM, 21st December 2021, About 4 weeks ago

Reply to the comment left by Rennie at 21/12/2021 - 13:47
Though I'm no fan of this government or it's leader, and we are all aware of their capacity to distort the truth to the point of outright and deliberate lies, could you expand on what you feel their lie is here and the printing money issue?

by Simon Zutshi

9:12 AM, 22nd December 2021, About 4 weeks ago

Reply to the comment left by Paul landlord at 21/12/2021 - 14:13
Hi Paul, I am not sure said the Government had told us a lie in this video. With regard to printing money there will be inflation because of this and usually interest rates are put up to control inflation. However because the Government has so much debt they can't really afford for interest rates to go up otherwise the interest on their debt may become unserviceable. I hope that makes sense. kind regards Simon

by Monty Bodkin

9:48 AM, 22nd December 2021, About 4 weeks ago

"Things like rents have also gone up massively"

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/november2021

Private rental prices paid by tenants in the UK rose by 1.7% in the 12 months to November 2021

by Rennie

11:45 AM, 22nd December 2021, About 4 weeks ago

Reply to the comment left by Paul landlord at 21/12/2021 - 14:13
Looks like my reply has been removed but just to let you all know I did reply

by Simon Zutshi

11:57 AM, 23rd December 2021, About 4 weeks ago

Hi Monty, I don't believe those figures. If you speak to most letting agents they will tell you there is a massive shortage and rents for good property have gone up as much as 15% to 20%. Kind regards Simon

by Monty Bodkin

12:56 PM, 23rd December 2021, About 4 weeks ago

Reply to the comment left by Simon Zutshi at 23/12/2021 - 11:57Annually, over 450,000 private rental prices are collected in England, 30,000 in Wales, 25,000 in Scotland and 15,000 in Northern Ireland.
The index does not only measure the change in newly advertised rental prices but reflects price changes for all private rental properties.

Rents have not gone up massively....yet.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER