Politics vs Economics: What Politicians Misunderstand About Markets
Many Happy Returns
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The Political Focus on Money Market Funds
Rates have increased by about 4 percentage points since the Bank of England started its rate hiking cycle. But yeah, the current accounts have not increased by that much. That's where the political focus is coming because that's the kind of rate people see advertised. If you want a high rate without locking up your money, you have to go into money market funds. And if a lot of people do that, then it will push the bank stuff up their savings rates as they'll be losing money.
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