Friday, 6 February 2009

Interest Rates at 1%!!!

Why?

It doesn't make any sense. It really, really hurts savers - like older people living off savings.

I guess our mortgage will go down again as we have a tracker mortgage.. but we will still keep on paying the old amount - so it will not release any extra cash for us to spend..

And how tough will it be for Govt's to increase interest rates at a later date now..

It seems crazy to me.. I guess Gordy is prepared to do absolutely anything to try and stimulate or should I say 'simulate' a recovery for long enough so he can call an election.

The press is full of talk about printing more money which doesn't make sense either as Gordy has tried to argue that he has avoided Inflationary Boom and Bust - yet he now is actively going to create inflation again.


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