RE: RPI inflation rate19 Apr 2023 22:24
NC
''Surely inflation even without interest rate rises 'should' albeit in a longer time frame, take care of itself.''
Oh dear Oh dear - maybe you think that the base rate should have remained at 0.1%
''it is mostly mortgage holders who 'suffer'''
not really - inflation eats away at debt over a period of time, with a decreasing ratio between mortgage outstanding and salary.
Fixed mortgage rates are a completely separate matter to inflationary rates and the BOE base rate.
''this share price which at inflation @ 10% pa SHOULD be 5 pence higher just on inflation alone''
did no one educate you before you embarked on stock market investments, that the capital employed is not inflation proofed?
The value of a businesses shares are what investors are willing to exchange at, which in turn will be dependant on the investors opinion about the future profitability and returns the business may give back to shareholders.
''But the point being as everything is going up, then there should be no need for interest rates to rise, as the fact that prices are increasing WITHOUT such, will 'do' what interest rates 'do' anyway, price people out of eventually being able to 'afford' so much, thus it 'should' self cancel.''
FFS
''As it is, by HMG keep increasing interest rates, it ends up shooting itself in the foot, as the Gov debt increases. Whereas IF they let inflation grow on all things, then eventually the items would have to fall in price, or remain 'unwanted' as unaffordable, and HMG's debt would not increase.''
More FFS
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