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BoE rate decision

ended 31. July 2022

Simple question for everyone in every sector:

  • Should the Bank of England raise interest rates this week? 

The expectation is that the Bank of England will raise rates by 0.5%. This despite the fact many argue raising rates is completely pointless as it simply adds more pressure on consumers, homeowners and businesses, while at the same time doing nothing to control our current level of inflation, which is largely imported. 

Give us your views in no more than 100 words. We will issue them to the media tomorrow (Monday) AM.

8 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
The Bank of England's remit is simple, to control inflation. However, raising rates isn’t going to combat inflation that we import in terms of the global oil price or commodity prices such as wheat and grain. It’s clear that a recession is around the corner, and this will drive inflation lower. It’s obvious that now is not the time to be raising rates. It would be ineffective and counter-productive. There needs to be a collective effort from the Bank of England and the Government to stave off what is shaping up to be a severe recession.
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Imran Hussain
Director at Harmony Financial Services
"The Bank of England does not really have a choice but to increase rates this week. However, rate rises in themselves won't be enough in the battle against rampaging inflation so there will have to be government intervention, too, specifically in relation to utilities. If not, whatever the Bank of England does still won't help ordinary working people in what is fast becoming an unprecedented crisis.
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Rob Peters
Principal at Simple Fast Mortgage
While the Bank of England's remit is clear, namely to 'control inflation', they simply don't have the right tools for the job. It's a bit like your builder turning up to work with just a hammer. Undoubtedly, there will be no choice but to increase interest rates this week. The key drivers of inflation remain energy prices and supply chain issues for many of the products we all need. The Bank of England is helpless to assist in these matters and we will all continue to feel the pain, potentially for some time yet.
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Jenny Blyth
Small business owner at Storm in a Teacup Gifts
The Country is in a pressure cooker and we will continue to remain there until some realistic change and policies are invoked. Till that happens we will remain in this endless cycle of pressure on pressure and raising interest rates will do nothing to help this.
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Jeffrey Longley
Director at Able Electrical Installation
I have a great idea to stop prices rising let's raise intrest rates. This will mean people will spend more on their mortgages and loans. Leaving them very little for the rest the goods that keep us all in jobs . Of course they won't demand higher wages or anything like that.
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Simon Shinerock
Chairman of Choices Estate Agency at Choices Estate Agency
There are pros and cons of raising rates, mostly to do with exchange rates. If we don’t increase rates, then the pound will get weaker and imports more expensive, thus adding to inflation. Our exports, however, will be more competitive. If we increase rates, the pound will strengthen, making imports cheaper, but our exports less competitive. Higher interest rates also control demand-led inflation, which is probably coming under control anyway due to the cost of living crisis.
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James Miles
Director - Mortgage Adviser at The Mortgage Quarter
Raising interest rates is the only weapon in the Bank of England's but it will continue to have a limited impact on inflation. In this case, the cure could be worse than the disease. The true rise in prices is supply-driven throughout the world, which will continue to get worse due to the war in Ukraine. We need more leadership and Government intervention to have meaningful results instead of targeting the already income-stretched population with rate rises. Fortunately, many homeowners are on fixed rate mortgages so their disposable income will not be affected.
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Anthea Morris
Finance Director at Better2Know
As a small business selling to the public, our main concern is that people keep spending money (without getting into debt of course) to keep the economy moving. We see costs increasing all around us, and upward pressure on our prices and staff costs. We are trying to resist both for our customers and to help stop inflation. We know that the low rates of interest cannot continue indefinitely but we have to stop inflation.