|
Managing Partners Group (MPG), the international asset management company, warns that further interest rate rises are no longer good for the economy. Base lending rates in the UK and US have rapidly increased from 0.25% in March 2022 to 5.25% today, an increase of 2000%, and MPG warns these increases have been implemented too aggressively, too fast and have gone too far.
Economic decision makers say they have to control inflation by increasing interest rates, however, MPG highlights that this doesn’t result in immediate benefits as it takes time for people to change their spending habits. Coupled with this is the fact that in the USA and UK, nearly 90% and 75% respectively of mortgages are on fixed rates creating a further lag between any change having a positive...
|