As rehearsed here many times, inflation, and mainly the US version, is the key to a revival in the fortunes of your and all of our investments. For responsible countries wanting to tame it, increasing interest rates remains the principal tool. And I guess the fact that those countries which have bucked that conventional wisdom (Turkey, Argentina and others) in pursuit of populism, have ended up with 100% or more shows its importance. Interest rates up, share and bond prices down to ‘increase yields’, the percentage return on your investment; same with house prices, certainly in the rental market. Even if they’re not going to increase rates again, the Bank of England and its international brethren have to hang tough to stop us getting too happy too soon. But it will all turn around; and when it does, it will happen surprisingly quickly.
“Reeves backs down on plans to cut ISA limit”
So it looks as though Cash ISAs are safe for the moment (FTM – is that a thing?) Rachel has apparently ‘bowed to pressure’ from the banks and building societies and decided not to reduce the allowance to £4,000 for cash and to keep the £20,000 parity with Stocks and Shares ISAs. Bowed also to common sense, I’d say.
