So interest rates are staying up here, and, as importantly for us, our investments and the rest of the world’s economies, in the US as well. Accentuating the positive, they haven’t gone up and consensus is that they have peaked and may well start to come down at some point this year. In an election year governments. Must, I’m sure, rue the day that they gave away control of interest-rate-setting to their central banks (the Bank of England and the Fed), as bringing them down would be an easy feel-good bribe, and blow the long-term effects. On that note, J Hunt seems to be saying that tax cuts are ‘unlikely’. He’s apparently ‘managing expectations’, which, given how much we actually need to be spending on so many things which don’t involve bombing and shooting people, is a good thing. I’d say.
“The true impact of inflation on cash savings and pensions”
Leaving your money in the bank or building society has always meant that its ‘real value’ after inflation will go down. Although rates go up to, supposedly, control inflation, any chart you look at will show that, apart from a few very short-term blips (N Lamont, I’m looking at you) they are never more than inflation.