Quote Sal Paradise="Sal Paradise"Complete rubbish - low interest only reduce investment returns if you stick the money in the bank. Invested correctly in capital projects low interest rates give very interesting investment opportunities. As a business we can borrow any amount we want at 1.4% over base - guess what we have borrowed substantial sums and invested in a variety of projects which we would not otherwise have as low interest rates shorten ROI time frames considerably
Young people can buy property in a host of places - plenty of cheap property in Bradford, Wakefield, Halifax, Oldham, Rochdale etc. Yes they may not be able to buy in London or Cornwall but there are plenty of places young people can afford to live the fact they choose not to is a different matter'"
Just taking up on your low interest rates, which, of course are beneficial to anyone borrowing money.
IF inflation continues to rise, which it has slowly begun to do (largely on the back of currency inflation) and still has some way to go, what happens to the millions of people and businesses that have borrowed using "cheap money".
A 0.5 or 1% increase in base bank rates would hit these people very, very hard and any growth in the economy will disappear faster than an ice cube in a tea pot.
