Good news or bad news, depending on whether you have a mortgage or money in the bank, is that interest rates haven’t, after all, gone up. As our economy slows still further a rate rise could be the final set of buffers for a fast-decelerating train. You may have noticed some hefty price rises, however, when you last filled your car with petrol or filthy diesel, which will push up inflation and will no doubt mean we have the whole ‘rates will have to rise’ palaver again next month.
“Cut interest rates to prevent recession, says Institute of Economic Affairs’ SMPC”
The ‘lag’, ‘trailing leg’ or ‘long wake’ of any economic measure means that its effects are often felt long after the problem it was supposed to solve has disappeared. 2010’s ‘balancing the books within the space of one parliament’ (that went well, didn’t it?), austerity to you and me, is one example.