With the bank of England resfusing to raise interst rates despite huge huge inflation incoming there has many industry experts calling for a better network of support from the BOE.
Jason Cozens, Founder & CEO of Glint, says: “Despite rapidly rising inflation, the Bank of England is refusing to adjust interest rates. Inflation is clearly out of control and consumers need more support from the bank. Currently, their cash and savings are losing value by the day as inflation outstrips interest rates.”
“In the UK, we’ve already surpassed the 2% target and there is even talk of inflation hitting 4% this year. US inflation sits at 5%, the highest level since the financial crisis and production prices in China are up 9% in a year putting global consumers at real risk of further price hikes if these increased production costs are passed on.”
“In addition to rapidly rising inflation and low interest rates, the value of our cash and savings is also eroded by consumers are hit by continued quantitative easing – around £900bn since the financial crisis – and shocking levels of government borrowing and debt – UK national debt sits at over 98% of GDP or £2.17tn. These factors ensure that the purchasing power of sterling declines over time and reduces the value of the cash in our wallets and our savings in the bank.”
“In a search for greater value and control, consumers are increasingly opting to spend and save in alternative currencies, such as gold or cryptocurrencies. However, the volatility of cryptos, shown by the recent collapse that has seen Bitcoin’s value drop 43% since the start of May and halve since its April peak, will ensure that it remains is an unattractive investment for many. Whilst the value of gold can decline, it has proven its reliability as a long-term store of value and prices continue to rise; up 5% from its March low, outperforming many other assets.”
Glint Pay Services Ltd. (glintpay.com) is a fintech company, based in London, Boulder (US) and Tokyo, that uses gold as an alternative global currency to enable its clients instantly to buy, sell, save, spend and now, share their physical gold and other currencies, through the Glint Mastercard® and Glint App.
