Is it right to raise interest rates in a recession?

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An economic downturn would usually mean an easing of rates, but there's inflation to tackle too.

The Bank of England is like the organiser of a bonfire night party. In one hand it has the jerry can full of petrol to fling over the pile of wet logs, in the other there's a fire extinguisher ready to put it out almost at the same time.

The UK is facing the start of a "very challenging" two-year recession, according to the Bank, the longest recession ever recorded in official statistics, and yet interest rates will carry on going up, after eight rises, including today's jumbo rise of to 3%. Governor Bailey told me that the net effect of today's announcements could be that fixed mortgage rates don't reach the 6%-plus level that seemed likely in the aftermath of the mini-budget. Although variable rate mortgages will go up automatically as a result of today's interest rate rise, fixed mortgage rates are influenced more by assumptions about where rates will go over two or five years. Mr Bailey is managing those expectations down, even as he actually raises current rates.

 

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Money makes the world go round, end of. Savers have had several barren years.

Do they real give a rats ass? Will u still support their propaganda anyway? Nope n yes

Previous BOE boss warned that this is the real brexit dividend.

No

If the BBC understood the BoE MPC remit, they wouldn't be asking such a stupid question.

The UK is entering an economic s**t storm. Interest rates on the up, tax rises coming in and inflation keeps rocketing upwards, a lot of people aren't going to have enough money to survive on the bare essentials. To paraphrase a famous tory slogan 'you've never had it so bad'.

Financial Experts?! ● :-(

We are now paying for years of very low interest rates. When I got my first mortgage the rate was 17%!

Really? Capitalism has done more for lifting people than any other form of economics, and even better when left without government meddling. Higher rates discourage spending and encourage thrift when people need it most.

It is right to raise interest rates to combat inflation

No. And it’s not right to say we are going into a long recession. Self fulfilling prophecy. The head of the Bank of England is hopeless.

Is it right to STEAL FROM SAVERS for 13+ years negative savings rates so the borrowers creditjunkies debtaholics can carry on living the Life Of Riley with no consequences? ONLY care about borrowers. At 0.1% they should have been paying down chunks, not buying iPhones.

Rates are being raised a year too late & so are are having to rise by a bigger amount to compensate for the delay. Consequence will be greater damage to growth & pain for the public. Andrew Bailey seems to be getting an easy ride after doing such a poor job. Should be sacked.

The photo 😂😂😂😂😂

When inflation is in double digits, it’s one of the only things you can do to try and get it down.

Don’t they raise interest rates to avoid inflation and prevent a recession? 🤔

Honey and milk post brexit heaven

but we're not 'officially' in recession... yet.

Sometimes needs must. Are you, like, twelve? Your standard of journalism is appalling

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