Was hiking interest rates again the right move or is the Bank of England in panic mode?
This is Money Podcast
This is Money
4.1 • 650 Ratings
🗓️ 23 June 2023
⏱️ 50 minutes
🧾️ Download transcript
Summary
After sitting on their hands for more than a decade, ratesetters have been shaken out of their slumbers by an inflation storm.
By historic standards 5 per cent is not high for interest rates, but unfortunately for borrowers we also started from a historic low and have gone from 0.1 per cent to here in just 18 months.
The belated headlong rush into raising rates is also the exact opposite of what the Bank of England spent years assuring homeowners would happen: the party line used to be ‘gradual and limited’.
The Bank is hiking rates to try to crush inflation but at the same time this affects a much smaller slice of homeowners than it once did and rapid rise in mortgage costs is crushing a generation of homeowners.
So, was another rate rise a wise move?
How bad is the pain for borrowers?
Is this not a patch on the 80s, or just as bad?
Has the Bank of England even given its rate rises long enough to take effect?
On this rate rise special podcast, Georgie Frost, Lee Boyce and Simon Lambert tackle all that and more.
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to This Is Money Podcast. I'm Georgie Frost and joining me and Simon Lambert today is Lee Boyce. |
| 0:08.2 | And coming up, 13th time lucky. The Bank of England turns the screw a little more on borrowers, |
| 0:13.9 | raising rates to 5% after inflation figures came out worse than expected. But is it all too late? And is there another way? We thought we dodged it, |
| 0:23.4 | but is recession inevitable now? And what will it mean for our money? Average rates on two-year |
| 0:28.8 | fixed-term deals surpassed 6% this week is the mortgage crisis really as bad as the 70s and 80s, |
| 0:35.4 | and should the government intervene to help out? |
| 0:38.0 | We look at what you can do if you're struggling to make your repayments. |
| 0:41.4 | And if you're looking for an extra bob or two, |
| 0:44.1 | Lee's here to tell us how to turn a side hustle into a full-time gig. |
| 0:47.9 | Don't forget, you stay up to date with all the latest breaking money news, |
| 0:50.4 | just go to this ismoney.co.com.uk or download the app. |
| 0:58.3 | Don't forget, you can stay on top of what's going on in the markets by tuning in to the Digest and Invest podcast by Itaro. |
| 1:00.3 | Go to your regular podcast platform and listen on the go. |
| 1:02.9 | Digest and Invest by Itoro, the podcast for those interested in trading and investing. |
| 1:07.0 | But first, the Bank of England raised interest rates for the 13th time on the bounce this week over concerns that inflation pressures were becoming more persistent. |
| 1:16.6 | At 5% the base rate now sits at the highest level in 15 years. |
| 1:21.3 | The day before the announcement, we got worse than expected inflation figures. |
| 1:24.6 | While the headline rate was the same as the previous month, |
| 1:28.3 | worryingly, core inflation increased. |
| 1:31.3 | Welcome, Simon, welcome Lee. Simon firstly, if you would, unpack the inflation news |
| 1:37.3 | and then explain why it meant the Bank of England felt they had to act and act more than people were expecting, well, earlier |
| 1:46.0 | in the week, certainly. Why did inflation stick at 8.7 percent? What is core inflation? |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from This is Money, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of This is Money and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2025.