ICR343: Interest rates are going up!
Interest rates went up this week, for only the second time in nearly a decade. In this episode, we’re looking at the factors behind the rate rise decision and what it means for your personal finances. There’s also a roundup of the latest personal finance news, and some updates from the world of Informed Choice this week.
Personal finance news
-Online retailer Amazon paid less tax in the UK last year, despite rising profits. Amazon Services UK paid taxes of £1.7m last year, lower than the £7.4m paid the year before, despite operating profits rising by £32m to £80m.
-Rents in England have risen 60% faster than wages since 2011. That’s according to new analysis from housing charity Shelter, which is highlighting a renting crisis now spilling out of cities into ‘Middle England’ towns.
-Measures to restrict the sale, marketing and distribution of high-risk contracts for difference (CFD) to retail clients have come into force across the EU. It follows the introduction in June of temporary restrictions by the European Securities and Markets Authority (ESMA).
-An independent review has been launched to examine the impact on consumers of the declining use of cash. The Access to Cash Review, chaired by former Financial Ombudsman Service head Natalie Ceeney, will look at the impact of new technology, including contactless payments, examining future consumer needs.
-Being financially savvy is the new sexy with singles, particularly women, looking for partners who are good with money. A new study by free-for-life credit report and score provider Noddle.co.uk reveals that, as financial instability takes hold, one in five single Brits sees good ‘financial awareness’ as among the most attractive qualities in a potential partner.
Interest rates are going up!
Following months of speculation, the Bank of England has finally put up interest rates.
Its Monetary Policy Committee voted unanimously in August for the 0.25% increase, voting 9-0 to put the Bank Rate up to 0.75%.
In setting interest rates, the Bank is trying to meet a 2% inflation target, but in a way that helps sustain economic growth and levels of employment.
In this episode of the podcast, we look at some of the driving factors behind the rate rise decision, what it means for borrowers and savers, and what is likely to happen next.