No more interest rate cuts THIS YEAR – Reeves and Ed Miliband to blame | Personal Finance | Finance
The Bank’s Rate Monetary Policy Committee (MPC) announced its final decision in noon. It has reduced the base rate five times since last August, and finally reduced the last month rates by 0.25 to 4%.
However, this voted to protect the bank ratio by 4.25%. Today’s decision will not be almost very close. Economists expect MPC to sit tightly at these last two meetings on November 6 and 18 December not only today.
In 2025, markets have left the chance of another deduction at one third. This is a terrible news for households, mortgage debtors and businesses fighting the debt cost.
At the end of the tunnel, the gloom will be dragged instead of light.
We would like to thank Rachel Reeves and Energy Secretary Ed Miliband for this. Their stupid policies kept inflation high and made more deduction impossible.
A completely different story elsewhere. Yesterday, the US federal reserve reduced the comparison rate to 4.25%. It can do this as 2.9% in August with US inflation.
More importantly, the Fed pointed out two more interest rates this year, which could reduce the rates to us to 3.75%.
The European Central Bank increased its main re -financing rate to 2.15%and the euro region inflation was fixed to 2%. There is room for other central bankers to take action. Not the Bank of England. Thanks to Reeves and Miliband.
Yesterday we learned that the UK inflation was stuck by 3.8% in August. The UK Bank actually expects to rise to 4%in September.
Worse, the prices of the foundations are rising fastest. According to Cornwall Insight, the food price inflation is now 5.1% per year, while energy bills are set to climb more than £ 68 in April. This is followed by jumping £ 35 in October at a time when wholesale gas prices fall.
What’s happening? Tom Clougherty from the Institute of Economic Affairs is clear: “Rising prices are largely directed by government policy as higher taxes and regulatory costs.”
In short, we pay for the policy mistakes of the ministers.
Reeves is a single female inflation machine. Inflation-press increases to public sector workers, increased the national insurance of employers to 15%and reduced the salary threshold they paid to £ 5,000. It also increased the minimum wage by 6.7%.
Food, retail, hospitality and other low -wage sectors have passed these costs and encountered higher prices in supermarkets, shops, bars and restaurants.
The households also take the tab for Miliband’s net zero madness.
Fossil fuels are faster than the system, Miliband imposes the costs of new grilled infrastructure and renewable subsidies on gas and electricity bills. There is a reason why it is labeled as the most dangerous man in the UK.
Pensioners suffering from cash shortages spend a larger slice of their income for food and heating.
Instead of alleviating pressure, Reeves and Miliband are more stakes and leave Britain stuck far above the US and Europe with inflation.
Reeves need desperately lower interest rates to reduce borrowing costs and create a financial ceiling gap in front of the nightmare budget. He won’t take them. And as I have shown before, it doesn’t deserve both. Unfortunately, the rest will pay the price. Every time we buy food or open the lights.
