Interest rate - rise first for three years to 0.25%

By rotide
Created 20/12/2021 - 11:07

Though you can bet your house that the next rise will be a hell of a lot quicker than that.

Interest rate manipulation is one of the tools at the Bank of England's disposal to control inflation to some degree. The target for inflation is 2% and we are now looking at 5.1% with the current economic landscape, pointing higher still, so a modest .25% rise is not going to magically halt this key economic statistic. It does send out messages though that the only way is up and there is a strong chance there will be several more rises, same amount until we hit 1%.

In short, higher mortgages but also higher savings rates......... well maybe! Just like lower fuel prices never seem to make the pumps, but higher ones?.... blink of an eye!

Knee Jerk predictions for 2022.

Interest rates - Higher still early 2022 and staying there for years

Unemployment - Lower but Brexit and the pandemic making it a slow process. Furlough coming back in limited format.

GDP growth - Minuscule.

Inflation -  Most of the nastys, such as higher energy, fuel, food Brexit related imported products, are already factored in so it might hang around at 5% plus for a while but 6%  is a rate we should not see in 2022

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