Someone told me the other day that I don’t seem to be as controversial as I used to be. I don’t think that is strictly true but maybe I have mellowed slightly now I am in a better work environment. I don’t generally believe in being controversial for the sake of it just to get headlines, but perhaps not being as young or as angry as I used to be has dampened my revolutionary ardour?
I must try harder.
Anyway, I was going to write a bit about fixed rates and the fact that I still think not enough people are taking them.
Today’s inflation figures, rising dramatically to 2.9%, could well bring to an end the ‘rate complacency’ we have seen among borrowers over the past year or so.
Whilst there are suggestions that this spike in inflation has been expected and is merely temporary, it is unlikely to drop off sharply if recovery does continue to grow and will undoubtedly put pressure on the Bank of England to seriously consider finally raising interest rates.
This is a real shot across the bows for borrowers, many of whom are quietly banking on a low interest rate environment in the short term. But this is a risky game to play.