Cable Forum - View Single Post - The Bank of England may have to cut rates to combat low inflation

Chrysalis · 18-09-2015, 16:28

deflation is good for the poor who often dont get increases in income.

I personally certainly prefer deflation to inflation.

Does seem daft when they been trying for years to get inflation down.

Basically tho it depends on your situation.

If you got piles of debt then high inflation is heaven, it devalues your debt. In particular its great for those with a mortgage.
If on the other hand you have lots of savings, then high inflation is bad, it devalues your savings.
If you have a static income such as benefit claimants or a dead end job, then inflation is likewise bad.

18-09-2015, 16:28	#5
Chrysalis cf.mega poster Join Date: Sep 2003 Posts: 12,048	Re: The Bank of England may have to cut rates to combat low inflation deflation is good for the poor who often dont get increases in income. I personally certainly prefer deflation to inflation. Does seem daft when they been trying for years to get inflation down. Basically tho it depends on your situation. If you got piles of debt then high inflation is heaven, it devalues your debt. In particular its great for those with a mortgage. If on the other hand you have lots of savings, then high inflation is bad, it devalues your savings. If you have a static income such as benefit claimants or a dead end job, then inflation is likewise bad.