I am worried that the recent and expected future increases in the cost of borrowing will hit me hard, as I have a reasonably large mortgage.
Are we trying to control inflation by adjusting the interest rate, to control house prices, which if they spiral out of control, will mean larger wage demands and drive up inflation.
Surely we should be controlling immigration and making more housing available (making more building land available), this will reduce demand and therefore prices, and save us all having to pay more for our mortgages (as the BoE increases interest rates to keep prices in check).
If the BoE keeps putting up interest rates, we'll all demand higher wages anyway, to pay the mortgages we already have!
2006-12-07
00:08:31
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11 answers
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asked by
ThePadd
1