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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 6 months ago by [email protected] to c/[email protected]

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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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[–] [email protected] 4 points 6 months ago

Inflation in the UK didn't really go into overdrive until Russia invaded Ukraine and caused a spike in oil and gas prices, which fed through to every other part of the economy because literally everything uses oil and/or gas at some point in the supply chain.