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U.K. banks raising mortgage interest rates…cause inflation hasn’t fallen as much as expected. Can anyone do an ELI5 as to why? (lemm.ee)

submitted 7 months ago by SouthEndSunset@lemm.ee to c/finance@beehaw.org

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As the title says, numerous banks in the U.K., maybe across the world, are raising interest rates on mortgages, and the given reason is cause inflation hasn’t fallen as much as expected. Can anyone give me a basic inflation, other than greed, as to why they’d do this?

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[–] megopie@beehaw.org 2 points 6 months ago* (last edited 6 months ago)

not really relevant to money lent to them by the government. Fractional reserve is in reference to people who have deposited savings in a bank, they still have to have money to lend it out, they cannot print new money, only the government can do that.