Vitalis Veritas Blog

Anxiety and panic was generated by the shock news from England's Bnaca of about 5.4% increase in the spring to counteract inflation due to the post-pandemic financial collapse and more ... LONDON -  Clear Score offers some useful advice to best stem this worrying financial tsunami that will see many families struggling in the incoming future.   In February 2022, the Bank of England raised interest rates from 0.25% to 0.5% and this was the second time interest rates went up in less than three months How does inflation affect interest rates? So, at over 5.4%, inflation (how much things go up in price) is the highest it’s been for 30 years. The Bank of England uses interest rates to control inflation – usually, the higher the rate of inflation, the lower you can expect interest rates to be.   So even though milk and bread might feel expensive, it might be cheaper to borrow money on a credit card. However, interest rates have been at an all-time low during the pandemic, which...

  Bank of England raises interest rate to 0.5% in effort to tame inflation ... LONDON - The Bank of England has intensified the squeeze on household finances with its first back-to-back interest rate rise since 2004 as the central bank forecast inflation will increase to 7.25 per cent in April. By a majority of five to four, the Bank’s Monetary Policy Committee voted to increase the cost of borrowing on Thursday from 0.25 per cent to 0.5 per cent. The minority wanted an even larger increase to 0.75 per cent to get a grip on surging inflationary pressure. The rise in official interest rates alongside the highest rate of inflation for more than 30 years would squeeze disposable household incomes by 2 per cent this year, with a further 0.5 per cent hit in 2023. That would be the biggest annual reduction in spending power since at least 1990, BoE officials said. This pain would depress spending and reduce the UK growth rate to a crawl of around 1 per cent a year. However, the ...