The low base rate is symptomatic of an unhealthy economy
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An interest rate of 0.5% is a clear signal of a bust and unhealthy economy, and should be seen as an emergency measure.
Why do people think the Bank of England base rate could stay at this rate for five years when it has never previously been below 2% in its 400-year history?
It’s unhealthy for consumers to get used to paying nothing on their mortgage - they will adjust their spending and lifestyle around this.
Rates should be 5% in a low inflation economy, not 0.5%.
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