Bank of England intervenes to stabilize U.K. economy as pound crashes
NBCJUL 2022
Previous rate hikes haven’t improved the financial environment for buyers and savers, so the BOE’s claim that it’s raising rates to improve the situation rings hollow. With the price of goods outpacing peoples' pensions and savings accounts — and now these rate hikes making it nearly impossible to pay off home loans — it appears the BOE is intent on following bad policy with something worse.
Rate hikes by the central bank in the UK, as in the US, are necessary and are slowly working to cool the economy. Prospective homebuyers may have to wait to buy a house in the short term, but it’s more important right now to tackle inflation with these rate raises.