Macroeconomics: UK economy, IB Economics

Phillip Inman looks at what's in store in the Budget and concludes that there's little prospect of pre-election sweeteners, particularly for homeowners and middle income families. 

This BBC article looks at the impact that higher interest rates are having on the economy for different groups, notably savers and homeowners with mortgages. It highlights how, although inflation is falling, it's likely to be the case that interest rates are going to remain higher than they have been in the period after the global financial crisis and the implications of this for macroeconomic objectives. 

Seemingly good news for mortgage borrowers with fixed rate mortgages starting to fall, to the extent that Halifax has cut its two year fixed rate interest rates by almost 1%, and HSBC is expected to follow suit. This should reduce some of the pressure on homeowners who are looking to remortgage their properties. 

Boris wants to turn "generation rent" into "generation buy" through government-backed loans. Ostensibly a good thing you would think.  But I'm going to offer another perspective, looking at both ends of the income spectrum. 

What is this policy going to achieve? It will get some people onto the property ladder, but it will make all those who are already homeowners even better off. Equally, what about those people who aren't near to being able to muster a 5% deposit? Are they to be excluded? 

You can answer those questions yourself.