So Catherine Mann (of the BoE's MPC - which sets #interestrates), thinks they need to go (even) higher to squeeze #inflation out of the UK's economy.... indeed, showing little regard for the effects, she told a Canadian audience; 'I would rather err on the side of over-tightening'!

The Q. is whether she can convince other members to keep raising rates further, seemingly uncaring whether squeezing inflation out of the economy actually squeezes the life out of it at the same time....

"Ever since the greedflation crisis began, the Bank of England has been attacking workers’ wages while downplaying corporate profiteering.

“Now the central bank’s own analysis supports what Unite has argued all along about inflation. Companies are raising prices simply to boost their own profit margins.”
Sharon Graham, General Secretary of Unite
#Greedflation #Inflation #Profiteering #BankOfEngland #InterestRates

https://www.theguardian.com/business/2023/sep/09/now-even-the-bank-of-england-admits-greedflation-is-a-thing

France’s housing crisis: Critics slam Macron’s failed ‘supply shock’ https://www.euractiv.com/section/economy-jobs/news/frances-housing-crisis-critics-slam-macrons-failed-supply-shock/?utm_source=dlvr.it&utm_medium=mastodon #EmmanuelMacron #housingcrisis #interestrates #Nexity #Supplyshock

U.S. Interest Rates High Enough to Tame Inflation, Avoid Recession: Chicago Fed - Federal Reserve Bank of Chicago economists predict low inflation and a resilient economy,... - https://www.coindesk.com/markets/2023/09/08/us-interest-rates-high-enough-to-tame-inflation-avoid-recession-chicago-fed/?utm_medium=referral&utm_source=rss&utm_campaign=headlines #federalreserve #interestrates #inflation #markets #economy #news #us

If we accept the Bank of England's logic (as we are told we've reached the likely peak of #interestrates rises) that a squeeze was needed due to inflationary tendencies in the economy, the Q. is what does such pressure appear at such anaemic rates of growth?

Two answers, either:

the diagnosis is wrong - inflation is not being caused by wage demands, or..

The UK's #productivity problem is now so great that there is no spare capacity for non-inflationary growth...

(or both, of course!)

It makes sense: if #landlords in deprived areas are more likely to have funded their properties through a #mortgage, they'd also be more likely to pass on #interestrates rises to tenants... and indeed it seems this is what is happening.

One more dimension of how the #housingcrisis' impact is skewed towards the poor(er) & vulnerable in society.

Rentier #capitalism at work

https://www.theguardian.com/money/2023/sep/03/uk-rents-rise-faster-in-deprived-areas-and-drag-more-people-into-poverty

U.S. August Job Adds of 187K Vs Estimates for 170K; Unemployment Rate Rises to 3.8% - With spot bitcoin ETF aspirations sidelined after the SEC yesterday pushed off decisions ... - https://www.coindesk.com/markets/2023/09/01/us-august-job-adds-of-187k-vs-estimates-for-170k-unemployment-rate-rises-to-38/?utm_medium=referral&utm_source=rss&utm_campaign=headlines #interestrates #employment #markets #bitcoin #economy #news #btc

Global News BC: B.C. Premier David Eby asks Bank of Canada to freeze hikes to interest rates https://globalnews.ca/news/9931842/bc-premier-david-eby-freeze-interest-rates/ #globalnews #britishcolumbia #news #borrowingrates #InterestRates #BankofCanada #lendingrates #TiffMacklem #inflation #mortgages #DavidEby #Economy

So today my neighbors behind me are leaving Metro Portland for Houston. Cited reason being they wanted “a big house” and they can’t afford one here. Granted, they have 3 kids, but I don’t think anyone could pay me to live in Texas.

Regardless of my feelings, I continue to see an exodus of friends and acquaintances leaving for the South and Midwest.

#pdx #realestate #interestrates #housing

Prepare yourself for:

* Higher monthly payments on adjustable rate mortgages
* Lower home affordability
* Higher monthly payments on auto loans
* More auto repossessions
* Banks tightening lending requirements
* Credit card interest rates going up

#federalreserve #inflation #interestrates

https://press.coop/@NPR/110951162467456211

Fed's Powell at Jackson Hole: Prepared to Raise Rates Further if Appropriate - Market participants were looking to Friday morning's speech to gauge the future direction... - https://www.coindesk.com/markets/2023/08/25/feds-powell-at-jackson-hole-prepared-to-raise-rates-further-if-appropriate/?utm_medium=referral&utm_source=rss&utm_campaign=headlines #federalreserve #interestrates #inflation #markets #bitcoin #news

Bitcoin Dreams Are Coming True in Argentina and Turkey - It’s no surprise a BTC-backing candidate just won a primary election in Argentina. - https://www.coindesk.com/coindesk-indices/2023/08/23/bitcoin-dreams-are-coming-true-in-argentina-and-turkey/?utm_medium=referral&utm_source=rss&utm_campaign=headlines #cryptolong&short #coindeskindices #interestrates #bitcoinprice #argentina #inflation #opinion

@sjwrenlewis offers two rather uncomfortable points for critics of the BoE's continuation of its policy of raising #interestrates to 'tackle' #inflation:

1. As most excessive profits (in #energy & #food) are actually taken abroad (by non-UK suppliers), any policy leverage is limited (or non-existent);

2. Real #wages have not grown in the last 15 years due to the UK's #productivity problem & so the recent (continued) lag is only compounded (not caused) by inflation!

https://mainlymacro.blogspot.com/2023/08/wage-inflation-unemployment-and-what.html

#Shelter's research suggests that over half of #workers in rental properties are only one payday away from falling into arrears & risking eviction....

The #insecurity of the poor is not some bug in the system, its a feature of the UK exploitative, rentier #capitalism that is structured around an insecure workforce in a weak bargaining position, so allowing the maintenance of #profits

[see also: the BoE's #interestrates policy (earlier post)]

https://www.theguardian.com/money/2023/aug/22/third-of-working-tenants-in-england-lack-savings-to-pay-rent-if-they-lose-job

#ONS research suggests that core #inflation in the UK is declining, which either suggests that the BoE's #interestrates policy is working or the real drivers of inflation in the UK are easing;

So, it will be interesting to see what the BoE does next... if they do not pause interest rate rises (or even reverse the rises) then we can safely say they're not really interested in inflation, but rather are seeking to discipline #workers while #profits are protected.

Watch & make your own judgment!

Bitcoin Bulls Mull the Meaning of New Fed Messaging on Inflation and Interest Rates - Instruments tied to interest rates compete with Bitcoin for investor dollars. - https://www.coindesk.com/markets/2023/08/21/bitcoin-bulls-mull-the-meaning-of-new-fed-messaging-on-inflation-and-interest-rates/?utm_medium=referral&utm_source=rss&utm_campaign=headlines #federalreserve #interestrates #inflation #markets #bitcoin #news

#mortgage #interestrates
When an 'infinity mortgage' is really infinite, and when it isn't | CTV News
https://www.ctvnews.ca/business/is-an-infinity-mortgage-really-infinite-experts-say-probably-not-but-it-s-not-good-1.6523934

Legendary Investor Jeremy Grantham Predicts Inevitable US Recession, Challenges Fed’s Forecast - A significant portion of investors and financial organizations surmise that the U.... - https://news.bitcoin.com/legendary-investor-jeremy-grantham-predicts-inevitable-us-recession-challenges-feds-forecast/ #danielledimartinobooth #deflationaryeffect #federalreserve #jeremygrantham #marketanalysts #robertkiyosaki #interestrates #michaelburry #assetprices #peterschiff #predictions #stockprices

https://www.nytimes.com/2023/08/17/business/wall-street-housing-market-mortgages.html?smid=nytcore-ios-share&referringSource=articleShare “Goldman predicts home prices will rise even more next year, in part because housing supply is so constrained.” #housing #unitedstates #inflation #veblengood #interestrates

#Inflation: stop hitting #homebuyers and squeeze the #SuperRich

#InterestRates are too blunt an instrument for an #economy so finely balanced. It’s time to use #taxes
https://www.theguardian.com/commentisfree/2023/aug/16/the-guardian-view-on-inflation-stop-hitting-homebuyers-and-squeeze-the-super-rich