What the papers say is not always clear


Plenty has been written in the newspapers recently about the outlook for inflation and the causes of the problem.

They described the reverberations we would feel as a result and this in turn led to a debate on interest rates.
You can spend hours going through the papers only to be none the wiser as a result.

In one Sunday newspaper there was an expert saying that base rate rises are the only way to halt inflation and how shocked he was that the Monetary Policy Committee didn’t raise rates by 0.25%.

On the same page the next article written by an equally qualified expert stated that interest rates couldn’t possibly rise in 2011. The austerity measures will hit us all hard and hiking interest rates could send personal finances spiralling out of control and create a surge in repossessions.

On the next page best buy tables showed all the fixed rates were significantly higher than a week previously.

Meanwhile the personal finance editors advised striking while the iron is hot and grabbing that low fixed rate while you still can.

Unsurprisingly another article by an equally qualified mortgage expert claimed that the fixed rate rises are a blip caused by those in the money markets trying to second guess inflation and recommended sitting tight until they ease down before considering a fix.

All I learnt on that Sunday was not to buy a newspaper as clearly no one knows what is going on in our world anymore.