Will a world of rising interest rates make you richer?
This is Money Podcast
This is Money
4.1 • 650 Ratings
🗓️ 16 February 2018
⏱️ 45 minutes
🧾️ Download transcript
Summary
Interest rates are going to rise in May, if you believe economists, but will things get better or worse for you if they do?
A few years ago, Mark Carney told us to enjoy the low inflation world while it lasted, but now wages are forecast to rise and keep inflation sticky, so interest rates are potentially going to inch up.
Rising rates are often painted as bad news but for many a world in which they go up will look more enjoyable.
What would be even more pleasurable is being paid more, so is Britain really finally about to break out of its low wage growth trap and get a pay rise?
On this week’s podcast, Simon Lambert, Rachel Rickard Straus discuss why we don’t get paid enough, what we can do about it and how to look on the bright side of rising interest rates.
Contrasting news on the struggles of first-time buyers, at the same time as they are at their highest level for a decade, is also on the agenda.
Plus, there is good financial news for unmarried couples, the new car tax madness that is about to bite and the energy saving myths that apparently mean you shouldn’t turn the heating up to make your home warm up quickly.
Transcript
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| 0:00.0 | Welcome to This Is Money Podcast in partnership with NS&I, your weekly roundup of the top personal finance, consumer and business stories that editor Simon Lambert and his team have been covering on their award-winning website. |
| 0:12.6 | I'm your host, Georgie Frost, and alongside Simon and I today is personal finance editor Rachel Rickard Strauss. |
| 0:19.3 | And this week, mark your card for May with sticky |
| 0:22.3 | inflation. The latest figures were out this week. There's more pressure on the Bank of England |
| 0:25.9 | to raise interest rates. But it's not all bad news, more pay, slower house prices, better |
| 0:30.7 | savings deals. Simon looks on the bright side. Saying that, though, do watch out if you're |
| 0:35.6 | on a variable rate mortgage. This really is it |
| 0:38.1 | for cheap-o deals. Nope, really. I know I've been saying this for a while, but this is it. Also today, |
| 0:44.0 | watch out for the new car tax ban set to bite from April. Good news for cohabiting couples and |
| 0:50.4 | Rachel helps us stay warm and solvent. All that and plenty more coming up. |
| 0:55.0 | Don't forget you can start up to date with all the latest breaking money news. |
| 0:58.0 | Just go to this ismoney.co.uk or download the app. |
| 1:02.0 | This is money, brought to you in partnership with NS and I. |
| 1:07.0 | Enjoy peace of mind with our new guaranteed income bonds and guaranteed growth bonds. |
| 1:12.8 | We've had lots of noise over the past couple of weeks, haven't we, about a possible rate rise? |
| 1:16.5 | The idea that they'd need to go up earlier and by a somewhat greater extent, as suggested by the Bank of England, |
| 1:22.6 | was only firmed up by higher than expected inflation figures out a few days ago. |
| 1:27.0 | Now, the first rise is still expected |
| 1:28.6 | in May. There will be winners and losers who've got used to an era of cheap money. Simon, |
| 1:33.8 | though, ever the optimist, we'll get to that shortly. But first, for those who aren't economists, |
| 1:39.6 | i.e. me, interest rates, currently 0.5%, could go up 25 basis points don't ask in a few months |
| 1:47.1 | inflation don't even get me started on CPI RPI CPIH that stuck at 3%. |
... |
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