Savings rates are on the rise, but even if you find the best buy, don’t be satisfied because an inflation train is roaring on the track.
The problem is that while traditional monetary policy theory dictates that interest rates should rise, we have not acted under normal circumstances since the financial crisis.
CPI inflation has already reached 3.2 per cent and they are nowhere near it even with the increase in savings rates.
Bank of England boss Andrew Bailey indicated this week that the base rate may need to rise sooner than expected if inflation continues, but that line remains largely stuck.
Plus, the dire impact of high prices on essentials – from petrol to energy to food – can remove heat on its own without a rate increase.
On this podcast, Lee Boyce, Georgie Frost and Simon Lambert look at why savings rates are rising, whether interest rates will follow suit and before we see the normalcy of savings accounts consistently beating inflation. That’s how long it could be.
Simon discusses whether an attack might be the best form of defense in the form of investing in the stock market – and why ‘just buy bitcoin’ comments should be ignored entirely.
Also, would you or would you like to live off the grid? What will it take? And will it really save money?
If the rate of inflation looks the same, will the rates go up?
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