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Well, to a degree, in a previous life I was paying over 6% on a mortgage but the house was only x2 my salary.
Its a different world now.
Raising interest rates isn't going to fix this inflation problem. Its not like people can just stop buying food and power, but its the only tool the bank have when the government are doing nothing.
HousecatHST-
the house was only x2 my salary.
True. The period of low interest rates and all the stupid schemes to get folks to buy houses is mostly to blame for where we’ve got to on house prices.
Personally I think it’s the long period of free money that has, ironically, impoverished us.
Unless you spent the entire period borrowing and buying houses and Rolex on cheap credit, in which case you’ve made a fucking killing.
We need a reset.
Howard
5% is pretty healthy tbh - it’s only in contrast with the last ten years or so that it looks bad
That said it should be 8%! All this pissing around with .5 increments is sending the wrong message.