tag:blogger.com,1999:blog-7314520695799326639.post5206059130921089812..comments2023-09-22T12:18:35.125+01:00Comments on Your Neighbourhood Economist: Question – Interest rates Your Neighbourhood Economisthttp://www.blogger.com/profile/00096015895608337029noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7314520695799326639.post-13046058471744183032014-07-18T19:12:23.784+01:002014-07-18T19:12:23.784+01:00Thanks a ton!Thanks a ton!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7314520695799326639.post-57030454852875215852014-07-17T11:07:23.607+01:002014-07-17T11:07:23.607+01:00It is not clear what effect an increase in interes...It is not clear what effect an increase in interest rates will have. I argued about that low interest rates had little effect so slightly higher interest rates will probably not substantially change much. However, the potential impact on the hearts and minds of consumers and investors is hard to gauge and an interest rates hike may dampen the fledgling economic recovery. Uncertainty for businesses will continue and may even get worse. Inflation is also likely to remain subdued until the global economy takes off which does not seem likely. Inflation these days tends to depend more on global commodity prices as wages in the UK (which is the other major cost for business) has been stagnating for decades.<br /><br />Hope this extra bit of explanation helps.Your Neighbourhood Economisthttps://www.blogger.com/profile/00096015895608337029noreply@blogger.comtag:blogger.com,1999:blog-7314520695799326639.post-37765976110133214742014-07-14T22:22:06.322+01:002014-07-14T22:22:06.322+01:00Thank you so much for this well explained answer! ...Thank you so much for this well explained answer! Any deductions on what would happen if they increase the rates in that time frame? Would this reduce uncertainty in businesses? What about inflation?Anonymousnoreply@blogger.com