Workers still paying the price
‘Greedflation’ to blame for interest rate rise
Reading time: 4 min
The Bank of England (BoE) announced for the first time today (August 3) that interest rates will stay higher for longer, in an effort, it says to battle soaring price rises.
The interest rate was raised a quarter of a per cent to 5. 25 per cent, meaning borrowing costs are now at their highest for 15 years. Higher mortgages and loan payments will follow.
The decision to make working families pay the price was slammed by Unite general secretary Sharon Graham. She said, “Once more, the Bank of England has made the wrong choice.
“Inflation remains high, not because of pay increases but as a result of ‘rampant profiteering’ and ‘greedflation’, with the UK’s top 350 companies rubbing their hands while raking in an average increase in profit margins of 89 per cent.
“There is no doubt – workers and their families are continuing to pay the price in this cost-of-living crisis. The economy is not working for everyday people and we need to make different choices. Until profiteering is tackled there can be no respite from continuing inflation.”
RATE RISE IN BRIEF
- BoE upped interest rate by 0.25 per cent to 5.25 per cent
- Last time rates this level was April 2008
- BoE says it expects inflation to fall below 5 per cent in final quarter of 2023
- Govt has pledged inflation will be 5 per cent or less by the year’s end – but overall target remains 2 per cent
- BoE’s base rate influences cost of borrowing – meaning an increase can lead to dearer mortgages
IN DEBT? WHAT CAN YOU DO?
- Talk to someone. You are not alone and there is help available. A trained debt adviser can talk you through the options. Here are some organisations to get in touch with.
- Take control. Citizens Advice suggest you work out how much you owe, who to, which debts are the most urgent and how much you need to pay each month.
- Ask for a payment plan. Energy suppliers, for example, must give you a chance to clear your debt before taking any action to recover the money
- Check you’re getting the right money. Use the independent MoneyHelper website or benefits calculators run by Policy in Practice and charities Entitledto and Turn2us
- Ask for breathing space. If you’re receiving debt advice in England and Wales you can apply for a break to shield you from further interest and charges for up to 60 days.
- Tackling It Together: More tips to help you manage debt
Above info all taken from BBC website
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Compiled by Amanda Campbell