Quote:
Originally Posted by Taf
Rate rises hit those who already have loans. But the idea behind them is to put people (and businesses) off taking out new loans to slow the economy.
Why not make the rate rises only apply to new loans?
Or would that hurt the banks too much?
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It also encourages savers to save. Not so much when the rate is below inflation, but if you have any confidence in the Government to do so there’s a few 5%+ products out there for 3/5 years now. And likely to be more in the coming months.