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The politics of interest rates: New YouGov poll finds more saying a rise would make them better off than worse off

December 26th, 2013

But is the headline just wishful thinking from the Times

With the possiblility of interest rates increasing in 2014 the Times is leading on polling that suggests that more pople would benefit than would lose out.

This certainly runs contrary to the general media narrative that low interests rates are a “good thing”. Maybe this is because those who work in the media are more likely to have big mortgages than those who do not.

Certainly the point that there are more savers who rely on interest income than borrowers has been made many times. The huge drop in rates following 2008 left many struggling. It also impacted on the levels of pensions that those coming up to retirement in money purchase schemes could expect to receive.

    What is not clear from the Times story is anything to back up the extraordinary headline that “Rate rise will keep you in Number 10 voters tell Cameron”.

The polling detail in not out yet but there’s nothing in the report that points to how this would play electorally.

Methinks that there’s a bit of wishful thinking there from the Times – Cameron’s biggest media cheerleader.

Mike Smithson

Blogging from OUTSIDE the Westminster bubble since 2004