5 years hard labour ?

[Bper]

Rachel Reeves is expected to relax borrowing rules and increase spending in her upcoming October 30 budget, a move known as fiscal loosening. A Treasury report has warned that for every £25 billion in extra borrowing, interest rates could rise by between 0.5 and 1.25 percentage points. This has raised concerns that an additional £50 billion on the government's credit card could lead to a sharp rise in mortgage costs for families.

Fiscal loosening means the government borrows more to spend more, which can help boost the economy, especially when growth is slow. However, it can also fuel inflation if the extra demand in the economy isn’t matched by supply. If inflation starts rising, the Bank of England may step in and raise interest rates to keep it under control.

Higher interest rates mean borrowing costs more, and that includes mortgages. So, if rates go up, families could see their monthly mortgage payments increase, which is what the Treasury is warning about.

The fiscal loosening isn’t all bad. If the extra spending goes towards things like infrastructure, education, or healthcare, it could lead to long term benefits for the economy. The real impact will depend on how well the money is used and whether inflation is already a big issue.

 

 

[Corolly Poly]

41 minutes ago, Bper said:

Rachel Reeves is expected to relax borrowing rules and increase spending in her upcoming October 30 budget, a move known as fiscal loosening. A Treasury report has warned that for every £25 billion in extra borrowing, interest rates could rise by between 0.5 and 1.25 percentage points. This has raised concerns that an additional £50 billion on the government's credit card could lead to a sharp rise in mortgage costs for families.

Fiscal loosening means the government borrows more to spend more, which can help boost the economy, especially when growth is slow. However, it can also fuel inflation if the extra demand in the economy isn’t matched by supply. If inflation starts rising, the Bank of England may step in and raise interest rates to keep it under control.

Higher interest rates mean borrowing costs more, and that includes mortgages. So, if rates go up, families could see their monthly mortgage payments increase, which is what the Treasury is warning about.

The fiscal loosening isn’t all bad. If the extra spending goes towards things like infrastructure, education, or healthcare, it could lead to long term benefits for the economy. The real impact will depend on how well the money is used and whether inflation is already a big issue.

 

 

Good news then for all the old gits on here with savings and no mortgage🤣

[Primus1]

1 hour ago, Corolly Poly said:

Good news then for all the old gits on here with savings and no mortgage🤣

Then I’m officially an old git👍👍👍👍

[Bper]

I suppose as I have become increasingly grumpier, I must be one as well☹️

[Haliotis]

Beginning to look like the light at the end of the tunnel is an express train coming towards us!