Remember the good old days, when growth was king, tax cuts and not tax rises were the order of the day, there was no talk of recession and the help we were going to get with our energy bills would have sorted out inflation. That, of course, was September’s Song, and all those positive vibes were ditched because, guess what, they sent interest rates soaring. And guess what’s happening now, interest rates are soaring. The difference is, this time it’s deliberate and, of course, ‘The Markets’ are happy now that austerity is back on the menu. Worth remembering that ‘The Markets’ comprise primarily bankers; and that one of the only Liz-and-Kwasi policies that hasn’t been reversed is the removal of the cap on their bonuses. So, win-win; if you’re not queuing at a food bank.
“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.
