Mortgage Rates and the Bank of England 2022-10-11
2022-10-11
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The recent increase in mortgage rates is affecting borrowers adversely, despite the government's efforts to mitigate other costs such as energy expenses and tax cuts.
What recent discussions has he had with the Governor of the Bank of England on rising mortgage rates? Will the Chancellor and Ministers meet more regularly with the Bank of England to co-ordinate policy a little more closely?
The Chancellor speaks regularly to the Governor of the Bank of England on a wide range of matters. The Chancellor and I regularly meet the Bank of England and all the individual lending banks in the UK. Interest rates have increased in every major economy despite what the Opposition may claim.
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Assessment & feedback
Meeting more frequently with the Bank of England to coordinate policies was not addressed directly.
Regular Meetings Already Occur
Global Trend
Response accuracy
Q2
Partial Answer
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Context
The government's mini-budget caused chaos in the bond markets due to £45 billion of unfunded spending and tax cuts, potentially increasing interest rates for all borrowers.
Does he now apologise for the chaos his mini-budget with its £45 billion of unfunded spending commitments and tax cuts has caused to the bond markets? Is it not a fact that there is a Tory premium on every interest rate rise for every borrower in this country?
The Government are supporting growth, providing support for energy bills and cutting taxes. They are boosting the economy with supply-side measures while opposing striking workers.
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Assessment & feedback
Apologizing for the chaos caused by the mini-budget was not addressed directly.
Supporting Growth
Opposing Strikes
Response accuracy
Q3
Partial Answer
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Context
The Chancellor's mini-budget led to a sharp increase in two-year fixed mortgage rates above 6% for the first time since 2008, affecting many home buyers negatively.
Why should people who have worked hard to buy their own home pay the price for the Government's mistakes? Why will Government borrowing cost more next year as a result of rising gilt yields?
We have talked about our comprehensive energy support package, which will help households this winter. We are also improving the supply side of the economy to grow and create tax revenues.
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Assessment & feedback
Addressing rising mortgage rates and increased borrowing costs was not directly addressed.
Energy Support
Supply-Side Measures
Response accuracy
Q4
Partial Answer
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Context
The Bank of England warned about a material risk to UK financial stability due to the Chancellor's mini-Budget, which has increased gilt yields significantly.
How much more will Government borrowing cost next year as a result of the rising gilt yields since the Chancellor's statement on 23 September?
We are seeing interest rates rise in every major western economy. The Government is protecting consumers and households through difficult winter months, cutting taxes.
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Assessment & feedback
Specific cost increase of government borrowing due to rising gilt yields was not addressed.
Global Trend
Protecting Consumers
Response accuracy
Q5
Partial Answer
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Context
The International Monetary Fund observed that the Chancellor's unfunded tax cuts have complicated the fight against inflation, leading to higher interest rates and potential mortgage defaults.
What is the Minister and his Treasury team doing to tackle the absolute chaos they have created?
The Government is tackling supply-side issues, strikes that hinder the economy, and building energy supplies. The nationalist party talks down the country but we take action.
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Assessment & feedback
Addressing the chaos caused by fiscal policies was not addressed directly.
Supply Side
Strikes
Response accuracy