Quote Originally Posted by DaveP67 is back! View Post
What gets on my tits is the bank *******s putting up mortgage rates but not doing the same to savings rates, no encouragement to save so people will spend which is the opposite of what the chancellor wants.
Spot on - saving disposable income helps to reduce inflation, helps those trying to get a large enough deposit for their first house and helps those who are retired & surviving on the paltry state pension with some modest savings.

More broadly - demand for consumer goods (phones, TV's and cars) is not driving inflation and the increasing interest rates have no effect on the majority who have a fixed rate deal. It is energy prices and food inflation, the former affects the latter, not demand driven as we haven't suddenly got hungrier however the situation in Ukraine has restricted the flow of wheat out of Odessa.

Gas - Liz Truss was influential in reducing gas storage, now according to British Gas we are increasing our reserves, buying really expensive gas! There is also the unwinding of printing money through a flawed furlough policy - it was obvious early on that the over 60's were the most at risk so no need to pay people to sit at home.

We've had low interest rates for a very long time which would cover all the formative years of many twenty-somethings now feeling the pinch, my kids are 15 & 18 but have never been the latest this & that and I haven't drummed that into them either. However, if as some have said there is a disconnect or have now pay later mentality then rapid re-education is needed?