Government forcing landlords to house non-paying tenants for lengthy periods11:18 AM, 15th September 2020
About 5 days ago 39
My business partners keep a very close eye on the economy by attending several Bank of England briefings and reading their agents Summary Business Reports and minutes of meetings, all of which are publicy available and shared here.
The bottom line appears to be that it will damage the future growth of GDP if interest rates rise whilst there is no demand based inflation. Sure, inflation does exist, look at what’s been happening to the price of fuel. However, that’s not demand based inflation. Increasing interest rates will not affect the price of oil as that’s controlled globally. For these reasons, the Bank of England’s Monetary Policy Committee appear to be suffering a confidence crisis. They have to account to government because they are not hitting their 2% inflation targets but they can’t control the issues that are causing this inflation. Strip out the elements of the economy they can’t control and that leaves us in a deflationary position in real terms.
So what can be done?
Employers margins are being squeezed and so are the budgets of all the people in this country. Employers can’t increase wages as this will squeeze their margins even more and we will have more business closures and even more unemployment.
So what’s the answer?
When do you think interest rates will rise and why?
Looking forward to reading your comments.
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