Banks to repay mortgages now inflation is negative

‘It’s the only decent thing to do,” said Mark Carney, governor of the Bank of England, after announcing that inflation had turned negative and that consequently banks will be reimbursing mortgage payments. George Osborne immediately outlined plans to reimburse savers tax paid on their savings, backdated indefinitely.

Economists warned that the general public might not recognise the benefits of lower prices and random acts of generosity by the government and might hoard money waiting for big ticket prices to drop further.

‘It’s unlikely that the British shopper might restrain himself from spending money like it’s going out of fashion, but we’re in uncharted waters here – I don’t think we’ve experienced untrammelled lending by banks before,’ Carney said, as the alarm clock started ringing and the fog of sleep lifted.


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Posted: May 20th, 2015 by

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