Could this be the peak for interest rates - and what will it mean for you?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 3 February 2023

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Are we nearly there yet? The Bank of England hiked interest rates again this week, adding 0.5 per cent to take base rate to 4 per cent.

That’s a level that it was almost unthinkable we’d reach so quickly a year ago, but rates have gone up hard and fast.

The questions now are will base rate stall and when will it come back down again? But while the Bank of England has sent rates up like a rocket, it’s forecast show that they will only fall like a feather.

On this week’s podcast, Georgie Frost, Tanya Jefferies and Simon Lambert look at how likely those forecasts are to be correct and what this all means for the economy, mortgages, savings and first-time buyers.

Also on the show, Tanya explains another potential state pension scandal that her and Steve Webb have uncovered and Steve joins the podcast to talk through it.

Sam North, of eToro, gives us a market update and explains why investors have sent stock markets soaring at the start of 2023.

The clock is ticking on the tax year and Simon explains why he thinks the next couple of months are vitally important for getting money into an Isa and potentially selling some investments to do so.

And finally, do you love your tumble dryer? Many do but worry they can’t afford to run them. Fear not, help might be at hand.

Transcript

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0:00.0	Welcome to This Is Money Podcast. I'm Georgie Frost and joining me and editor Simon Lambert today is Pensions and Investments Editor Tammy Jeffries. And coming up, are we nearly there yet? Rates go up again, the tenth rise on the bounce. So when will the Bank of England give it a rest? Also today our tenure exposes a new state pension failure.
0:22.4	We take a look at what kind of ICER is right for you. It's getting more important. And the great
0:26.9	tumble-dry debate rumbles on. Don't forget you to the update with all the latest breaking money
0:31.0	news. Just go to this ismoney.com.com or download the app. The This is Money podcast,
0:40.7	in partnership with Eitoro, your multi-asset social investing platform.
0:44.3	Want to learn more about the latest financial news straight from the analysts themselves?
0:50.0	Tune in to Digest and Invest, the podcast by Eutoro, for weekly bite-sized updates for anyone interested in trading and investing.
0:52.0	The Digest and Invest podcast, available on all your regular podcast platforms.
0:56.2	But first, the Bank of England up the base rate this week for the 10th time on the trot,
1:01.3	from 3.5% to 4%, the highest level in over 14 years.
1:06.0	Not a unanimous decision.
1:08.0	Two members voted to hold rates where they are.
1:10.8	It's all in a bit,
1:11.6	of course, to curb inflation. So we're told, is it working, though? And what does it mean for us
1:17.2	and our money? Simon, Tanya, welcome. Simon, the latest move, your thoughts.
1:24.0	4%. I'll hold my hands up. So anybody doesn't have to listen back to all the episodes of the podcast where I said this.
1:32.2	I didn't think they'd get this high. I didn't think the Bank of England would manage to make it to 4%. I thought they would have to stop before they got here.
1:39.8	But I don't think many people expected rates to rocket up into the air like they have done.
1:45.6	It's astonishing when you consider the decade and more of ultra low interest rates after
1:53.1	the financial crisis.
1:54.8	The pathological fear of raising interest rates, despite the fact that there were many occasions when we could have done so.
2:04.6	The fact that interest rates were cut to an emergency level one, two, three times.
	...

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