RE: Reality of the Challenger Banks6 Feb 2022 23:49
j46 citing Daily Mail article, comments " Confirmation that rate rises are only temporary"
I cannot see any inference this article makes that interest rate rises will be temporary. I wonder how you reached this conclusion. The article states that "Gerald Lyons, a former adviser to the Prime Minister accused Bailey of having a 'complacent attitude' towards inflation" and Sentance backs up the story saying he doesn't have very good communication skills, not like Mervyn did. It goes on to make links between QE policy and high house prices fuelled by cheap borrowing. After pressing on Baileys requests not to ask for too much of a wage rise, it drags out a former Deputy Governor to confirm high inflation will hit hardest on poorer households. It ends with an eye on year end rates increasing to 1.5% but also quotes Capital Economics forecasting a shallower trend to 1.25% by year end, but continuing to rise in 2023.
Please could you explain where it confirms rate increases will only be temporary.
I assume you can, as you posted it with the kind of certainty a teacher would deliver to their class of learners. Is your comment an accurate summary or are you reading into it the things you want to hear?