Interest Rate Rise

[tyke1962]

Congratulations to the BOE on squeezing already stretched mortgage holders plus a cost of living crisis in to yet more hardship that many will do well to keep a roof over their heads .

Congratulations on doubling the unemployment figures which is sure to follow .

Of course this is just an ideological choice isn't it , even you aren't that stupid as to think higher interest rates brings down inflation .

Now tell me this you bunch of fecking crooks , who do you represent on Threadneedle Street because it sure ain't the citizens of this country ?

Note to the Labour Party , once you enter government get these crooks back under government control and get them representing the whole country .

[BillyStubbsTears]

Tyke


Raising interest rates is precisely THE textbook method of curbing inflation.

This is going to hurt like hell, because the economy is already in recession and usually, inflation isn't the threat in a recession - quite the opposite. We're in a crisis not seen for half a century of rampant inflation at the exact same time as recession is starting and there's no easy way out of this.

The BoE has little alternative but to do this
 The alternative of not doing it would be far worse in the long run. And 'm not going to blame this Govt for us having this combination of problems. It's mainly external issues that have driven this, including Putin's War and a very sluggish Chinese economy.

That said, there absolutely IS something that Govt could be doing, which is to increase spending on capital investment, in particular in wind and solar power.

And in the big scheme of things, we are in a particularly difficult position because we haven't been investing in capital infrastructure while the Tories have been in power. And our economic performance has been appalling as a result. I've regularly pointed out that the 2010s were our worst decade of economic growth for 200 years. Looks like the first half of the 2020s will make that look like a walk in the park.

[tyke1962]

Tyke


Raising interest rates is precisely THE textbook method of curbing inflation.

This is going to hurt like hell, because the economy is already in recession and usually, inflation isn't the threat in a recession - quite the opposite. We're in a crisis not seen for half a century of rampant inflation at the exact same time as recession is starting and there's no easy way out of this.

The BoE has little alternative but to do this
 The alternative of not doing it would be far worse in the long run. And 'm not going to blame this Govt for us having this combination of problems. It's mainly external issues that have driven this, including Putin's War and a very sluggish Chinese economy.

That said, there absolutely IS something that Govt could be doing, which is to increase spending on capital investment, in particular in wind and solar power.

And in the big scheme of things, we are in a particularly difficult position because we haven't been investing in capital infrastructure while the Tories have been in power. And our economic performance has been appalling as a result. I've regularly pointed out that the 2010s were our worst decade of economic growth for 200 years. Looks like the first half of the 2020s will make that look like a walk in the park.

Ideological choice Billy , surprised you've fallen for it to be honest .

The rise in inflation this year is down to pre Putin's war and Putin's war  .

Inflation is bound to come down next year irrespective of interest rate increases because the measurement will be Putin's war and hmm ..... Putin's war .

[wilts rover]

That old communist, Winston Spencer Churchill, calling for the government to impose a wealth tax on the super wealthy in a HoC debate on the introduction of Income Tax for them, 1909

[wilts rover]

Now Bank of England interest base rates are 3% UK commercial banks will earn £27bn in interest from the UK government in the next year. A year ago we could have expected less than £1bn. That’s half the supposed ‘black hole’ that justifies austerity for everyone but bankers - Richard Murphy, Prof of Accountancy Practice, Sheff Univ

https://twitter.com/RichardJMurphy/status/1588241946828738560

Without mechanisms to keep prices going higher, they will fall. This is what happened in 2009 after the last big shock. There’s no sign that both price- and wage-setters are simultaneously driving up their demands. But there are distributional and political choices in how inflation is brought down. The Bank places an oppressive thumb on the scale of economic justice, to guarantee the continued – and baleful – dominance of extractive interests in the British economy. As the central banks’ annual report shows, they think that if the rising cost of goods causes inflation, then workers, not companies, should pay for it with lower pay. The Bank of England should be stopped in its tracks, not left to ride roughshod over the public.

Former BoE economist Prof Danny Blanchflower quoted in Richard Murphy's blog:

https://www.taxresearch.org.uk/Blog/2022/11/03/the-bank-of-england-should-be-stopped-in-its-tracks-not-left-to-ride-roughshod-over-the-public/

[no eyed deer]

Tyke


Raising interest rates is precisely THE textbook method of curbing inflation.

This is going to hurt like hell, because the economy is already in recession and usually, inflation isn't the threat in a recession - quite the opposite. We're in a crisis not seen for half a century of rampant inflation at the exact same time as recession is starting and there's no easy way out of this.

The BoE has little alternative but to do this
 The alternative of not doing it would be far worse in the long run. And 'm not going to blame this Govt for us having this combination of problems. It's mainly external issues that have driven this, including Putin's War and a very sluggish Chinese economy.

That said, there absolutely IS something that Govt could be doing, which is to increase spending on capital investment, in particular in wind and solar power.

And in the big scheme of things, we are in a particularly difficult position because we haven't been investing in capital infrastructure while the Tories have been in power. And our economic performance has been appalling as a result. I've regularly pointed out that the 2010s were our worst decade of economic growth for 200 years. Looks like the first half of the 2020s will make that look like a walk in the park.

So nothing to do with locking a world economy down.

[tyke1962]

Tyke


Raising interest rates is precisely THE textbook method of curbing inflation.

This is going to hurt like hell, because the economy is already in recession and usually, inflation isn't the threat in a recession - quite the opposite. We're in a crisis not seen for half a century of rampant inflation at the exact same time as recession is starting and there's no easy way out of this.

The BoE has little alternative but to do this
 The alternative of not doing it would be far worse in the long run. And 'm not going to blame this Govt for us having this combination of problems. It's mainly external issues that have driven this, including Putin's War and a very sluggish Chinese economy.

That said, there absolutely IS something that Govt could be doing, which is to increase spending on capital investment, in particular in wind and solar power.

And in the big scheme of things, we are in a particularly difficult position because we haven't been investing in capital infrastructure while the Tories have been in power. And our economic performance has been appalling as a result. I've regularly pointed out that the 2010s were our worst decade of economic growth for 200 years. Looks like the first half of the 2020s will make that look like a walk in the park.

So nothing to do with locking a world economy down.

Doesn't apply to us , we have a sovereign currency so we can't go broke .

[big fat yorkshire pudding]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

[SydneyRover]

the UN have had their say ans said not the time for austerity

[BillyStubbsTears]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

I broadly agree with this given where we are now. The lesson of the current crisis is that we aren't as well off as a country as we thought we were. As you nearly  say, part of the issue now is how we share a smaller pie.

But that's only part. There is still zero excuse for cutting capital investment. And there is a massive point to reflect on. Why the hell did we not invest in capital infrastructure during the 2010s when our Govt could have borrowed at negative interest rates. If we had done, we'd be in a far stronger position now. If we don't learn from that, we don't deserve to do better in future.

I almost screamed with frustration listening to Hunt on the radio tonight saying "Households have to tighten their belts and so does the Govt". That's precisely the idiotic crap that got us into the worst economic decade for 200 years. Hunt clearly hasn't learnt anything.
 

[wilts rover]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

Inflation is high primarily because energy producers are being allowed to charge whatever they want for it during a war and make obsence profits. Interest rates going up will benefit rich savers and bankers.

How will closing libraries, day care centres and reducing the eligibilty for free school meals help this?

Yet there is a choice of who to hurt most!!!! I am afraid it is you who sounds like Liz Truss - help the rich.

[Filo]

Govt tighten their belts, thats why the Home Secretary took a Chinook from Dover to Manston yesterday, a distance of 20 miles , it costs £3500 an hour to fly a Chinook! They wouldn’t know what tightening belts means!

[Colin C No.3]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

I broadly agree with this given where we are now. The lesson of the current crisis is that we aren't as well off as a country as we thought we were. As you nearly  say, part of the issue now is how we share a smaller pie.

But that's only part. There is still zero excuse for cutting capital investment. And there is a massive point to reflect on. Why the hell did we not invest in capital infrastructure during the 2010s when our Govt could have borrowed at negative interest rates. If we had done, we'd be in a far stronger position now. If we don't learn from that, we don't deserve to do better in future.

I almost screamed with frustration listening to Hunt on the radio tonight saying "Households have to tighten their belts and so does the Govt". That's precisely the idiotic crap that got us into the worst economic decade for 200 years. Hunt clearly hasn't learnt anything.
 

He’s learnt how to come back from back bench obscurity to obtain the 2nd highest ministerial position in the land.

I’m alright Jack…..

[BillyStubbsTears]

Shapps (f**king SHAPPS!) on the radio this morning laying out the groundwork for the coming announcement that they are going to butcher the capital investment budget. I could honestly weep over this. It's stupidity of the highest order

[BobG]

Sadly, we have reached the stage in Britain now where 'sense' is almost irrelevant in politics. Butchering the capital investment budget does several thkngs for the Conservative Party - none of them sensible, but all of them electorally valuable. It allows the Conservatives to be seen to be 'doing something'. They hope it will lead to a fairly general sense across the country that the current PM is 'on top of the job' which would be a hugely valuable asset when none of the opposition parties can demonstrate experience in government leadership roles. It will, they hope, resurrect, reinvigorate, the Conservative reputation for being the best managers of the economy. Squeezing budgets will allow the Conservatives to contrast with the perceived Labour Party 'tax and spend' reputation. A squeeze now will obviously create room for a pre election boom, even if of smaller proportions than is their usual wont. It will allow the Conservatives to promise 'jam tomnorrow' as they highlight 'irresponsible' Labour economic management. It will play into the common man's experience of financial stress: cut back spending is all the vast majority of the electorate understand. So squeezing spending, and budgets too, will resonate with the majority of voters, especially when multi billion pound spending, which will be attributed to Labour, is totally counter cultural.

This is one of the main reasons this country is going down the tubes economically: decision making and planning based around the maintenance of power - not the prosperity of the nation. Prosperity is now restricted to an electorally powerful minority.

BobG

[big fat yorkshire pudding]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

Inflation is high primarily because energy producers are being allowed to charge whatever they want for it during a war and make obsence profits. Interest rates going up will benefit rich savers and bankers.

How will closing libraries, day care centres and reducing the eligibilty for free school meals help this?

Yet there is a choice of who to hurt most!!!! I am afraid it is you who sounds like Liz Truss - help the rich.

I mean I didn't say any of that but whatever.....

Perhaps you should read my points, not too far from BSTs really. Encourage investment and capital spend, discourage unnecessary spending.  I was quite clear that tax cuts for the rich were pointless, they were.  What Liz truss did do was almost open the doors for Sunak to do this because ultimately the markets did not like spending, we'll see most countries with a deficit on gas/oil imports cutting back.

Interesting to note what the Scottish budget unveiled this week, I fear England may go the same way, but no idea how it is prevented.

[wilts rover]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

Inflation is high primarily because energy producers are being allowed to charge whatever they want for it during a war and make obsence profits. Interest rates going up will benefit rich savers and bankers.

How will closing libraries, day care centres and reducing the eligibilty for free school meals help this?

Yet there is a choice of who to hurt most!!!! I am afraid it is you who sounds like Liz Truss - help the rich.

I mean I didn't say any of that but whatever.....

Perhaps you should read my points, not too far from BSTs really. Encourage investment and capital spend, discourage unnecessary spending.  I was quite clear that tax cuts for the rich were pointless, they were.  What Liz truss did do was almost open the doors for Sunak to do this because ultimately the markets did not like spending, we'll see most countries with a deficit on gas/oil imports cutting back.

Interesting to note what the Scottish budget unveiled this week, I fear England may go the same way, but no idea how it is prevented.

Sorry BFYP don't take it personaly I just used your post to make my point. There is no choice to make - its just the rich who dont wish to pay more tax to get us out of the hole they have created - and are making bigger by their profiteering - who want to make the public think there is. Dont get sucked into it.

For example you dont see inflation explained like this in the media:

They tell you that the price of bread rose 22% because the price of flour & electricity rose by 22%. But they don't you that bread & electricity account only 15% of bread's cost, the rest = labour. So, given that wages are stagnant, bread costs rose by 3.3% (15%X22%) = Profiteering!

Because if they did people wouldn't be so willing to let the Tories get away with hurting ordinary people so millionaires can get richer.

All we can do is tell people the truth & break this false narrative that they want to create. The electoral polls will do the rest.

[normal rules]

Savings interest rates on the up again.

[selby]

  Told you last year, in any financial downturn, Banks always do well, and cash to the guy in the street is king.

[tyke1962]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

Inflation is high primarily because energy producers are being allowed to charge whatever they want for it during a war and make obsence profits. Interest rates going up will benefit rich savers and bankers.

How will closing libraries, day care centres and reducing the eligibilty for free school meals help this?

Yet there is a choice of who to hurt most!!!! I am afraid it is you who sounds like Liz Truss - help the rich.

I mean I didn't say any of that but whatever.....

Perhaps you should read my points, not too far from BSTs really. Encourage investment and capital spend, discourage unnecessary spending.  I was quite clear that tax cuts for the rich were pointless, they were.  What Liz truss did do was almost open the doors for Sunak to do this because ultimately the markets did not like spending, we'll see most countries with a deficit on gas/oil imports cutting back.

Interesting to note what the Scottish budget unveiled this week, I fear England may go the same way, but no idea how it is prevented.

Sorry BFYP don't take it personaly I just used your post to make my point. There is no choice to make - its just the rich who dont wish to pay more tax to get us out of the hole they have created - and are making bigger by their profiteering - who want to make the public think there is. Dont get sucked into it.

For example you dont see inflation explained like this in the media:

They tell you that the price of bread rose 22% because the price of flour & electricity rose by 22%. But they don't you that bread & electricity account only 15% of bread's cost, the rest = labour. So, given that wages are stagnant, bread costs rose by 3.3% (15%X22%) = Profiteering!

Because if they did people wouldn't be so willing to let the Tories get away with hurting ordinary people so millionaires can get richer.

All we can do is tell people the truth & break this false narrative that they want to create. The electoral polls will do the rest.

The price of wheat in a loaf of bread is another one Wilts .

A standard loaf contains less than 11% of wheat .

[Dutch Uncle]

Now tell me this you bunch of fecking crooks , who do you represent on Threadneedle Street because it sure ain't the citizens of this country ?

Nothing to do with the economy but Threadneedle Street was previously known by another name, an earlier medieval name that was shared with a tiny side street off Merton Street called Magpie Lane (right by the former College of one Liz Truss).

The name? 'Grope C*nt Lane' 

Strange but true. What does it say about bankers (and students of Merton College) 


https://en.wikipedia.org/wiki/GropeKitson_Lane

LOL; I put a link to the name which was automatically corrected 

[BobG]

Lol. Students of Merton College!!!

BobG

[big fat yorkshire pudding]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

Inflation is high primarily because energy producers are being allowed to charge whatever they want for it during a war and make obsence profits. Interest rates going up will benefit rich savers and bankers.

How will closing libraries, day care centres and reducing the eligibilty for free school meals help this?

Yet there is a choice of who to hurt most!!!! I am afraid it is you who sounds like Liz Truss - help the rich.

I mean I didn't say any of that but whatever.....

Perhaps you should read my points, not too far from BSTs really. Encourage investment and capital spend, discourage unnecessary spending.  I was quite clear that tax cuts for the rich were pointless, they were.  What Liz truss did do was almost open the doors for Sunak to do this because ultimately the markets did not like spending, we'll see most countries with a deficit on gas/oil imports cutting back.

Interesting to note what the Scottish budget unveiled this week, I fear England may go the same way, but no idea how it is prevented.

Sorry BFYP don't take it personaly I just used your post to make my point. There is no choice to make - its just the rich who dont wish to pay more tax to get us out of the hole they have created - and are making bigger by their profiteering - who want to make the public think there is. Dont get sucked into it.

For example you dont see inflation explained like this in the media:

They tell you that the price of bread rose 22% because the price of flour & electricity rose by 22%. But they don't you that bread & electricity account only 15% of bread's cost, the rest = labour. So, given that wages are stagnant, bread costs rose by 3.3% (15%X22%) = Profiteering!

Because if they did people wouldn't be so willing to let the Tories get away with hurting ordinary people so millionaires can get richer.

All we can do is tell people the truth & break this false narrative that they want to create. The electoral polls will do the rest.

Fair enough on point one.

Not sure I agree on the rest though.  Can't speak for every business but trading is tough, costs are high, profits are down, certainly in my business.  Trust me as someone who has a decent amount of my income company performance based it has been felt.

My experience is wages are up quite significantly, if someone leaves you are replacing them at 10%+ the cost.

Each industry will have unique challenges of course and it's fair to say that actually some costs are not just stable but declining a little.

[tyke1962]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

Inflation is high primarily because energy producers are being allowed to charge whatever they want for it during a war and make obsence profits. Interest rates going up will benefit rich savers and bankers.

How will closing libraries, day care centres and reducing the eligibilty for free school meals help this?

Yet there is a choice of who to hurt most!!!! I am afraid it is you who sounds like Liz Truss - help the rich.

I mean I didn't say any of that but whatever.....

Perhaps you should read my points, not too far from BSTs really. Encourage investment and capital spend, discourage unnecessary spending.  I was quite clear that tax cuts for the rich were pointless, they were.  What Liz truss did do was almost open the doors for Sunak to do this because ultimately the markets did not like spending, we'll see most countries with a deficit on gas/oil imports cutting back.

Interesting to note what the Scottish budget unveiled this week, I fear England may go the same way, but no idea how it is prevented.

Sorry BFYP don't take it personaly I just used your post to make my point. There is no choice to make - its just the rich who dont wish to pay more tax to get us out of the hole they have created - and are making bigger by their profiteering - who want to make the public think there is. Dont get sucked into it.

For example you dont see inflation explained like this in the media:

They tell you that the price of bread rose 22% because the price of flour & electricity rose by 22%. But they don't you that bread & electricity account only 15% of bread's cost, the rest = labour. So, given that wages are stagnant, bread costs rose by 3.3% (15%X22%) = Profiteering!

Because if they did people wouldn't be so willing to let the Tories get away with hurting ordinary people so millionaires can get richer.

All we can do is tell people the truth & break this false narrative that they want to create. The electoral polls will do the rest.

Fair enough on point one.

Not sure I agree on the rest though.  Can't speak for every business but trading is tough, costs are high, profits are down, certainly in my business.  Trust me as someone who has a decent amount of my income company performance based it has been felt.

My experience is wages are up quite significantly, if someone leaves you are replacing them at 10%+ the cost.

Each industry will have unique challenges of course and it's fair to say that actually some costs are not just stable but declining a little.

So the BOE should be doing the exact opposite and lowering interest rates .........  Yes ?

[Glyn_Wigley]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

Inflation is high primarily because energy producers are being allowed to charge whatever they want for it during a war and make obsence profits. Interest rates going up will benefit rich savers and bankers.

How will closing libraries, day care centres and reducing the eligibilty for free school meals help this?

Yet there is a choice of who to hurt most!!!! I am afraid it is you who sounds like Liz Truss - help the rich.

I mean I didn't say any of that but whatever.....

Perhaps you should read my points, not too far from BSTs really. Encourage investment and capital spend, discourage unnecessary spending.  I was quite clear that tax cuts for the rich were pointless, they were.  What Liz truss did do was almost open the doors for Sunak to do this because ultimately the markets did not like spending, we'll see most countries with a deficit on gas/oil imports cutting back.

Interesting to note what the Scottish budget unveiled this week, I fear England may go the same way, but no idea how it is prevented.

Sorry BFYP don't take it personaly I just used your post to make my point. There is no choice to make - its just the rich who dont wish to pay more tax to get us out of the hole they have created - and are making bigger by their profiteering - who want to make the public think there is. Dont get sucked into it.

For example you dont see inflation explained like this in the media:

They tell you that the price of bread rose 22% because the price of flour & electricity rose by 22%. But they don't you that bread & electricity account only 15% of bread's cost, the rest = labour. So, given that wages are stagnant, bread costs rose by 3.3% (15%X22%) = Profiteering!

Because if they did people wouldn't be so willing to let the Tories get away with hurting ordinary people so millionaires can get richer.

All we can do is tell people the truth & break this false narrative that they want to create. The electoral polls will do the rest.

Fair enough on point one.

Not sure I agree on the rest though.  Can't speak for every business but trading is tough, costs are high, profits are down, certainly in my business.  Trust me as someone who has a decent amount of my income company performance based it has been felt.

My experience is wages are up quite significantly, if someone leaves you are replacing them at 10%+ the cost.

Each industry will have unique challenges of course and it's fair to say that actually some costs are not just stable but declining a little.

So the BOE should be doing the exact opposite and lowering interest rates .........  Yes ?

No.

Increase interest rates, reduce disposable income, reduce general demand, reduce upward price pressure.

Standard macroeconomics.

[big fat yorkshire pudding]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

Inflation is high primarily because energy producers are being allowed to charge whatever they want for it during a war and make obsence profits. Interest rates going up will benefit rich savers and bankers.

How will closing libraries, day care centres and reducing the eligibilty for free school meals help this?

Yet there is a choice of who to hurt most!!!! I am afraid it is you who sounds like Liz Truss - help the rich.

I mean I didn't say any of that but whatever.....

Perhaps you should read my points, not too far from BSTs really. Encourage investment and capital spend, discourage unnecessary spending.  I was quite clear that tax cuts for the rich were pointless, they were.  What Liz truss did do was almost open the doors for Sunak to do this because ultimately the markets did not like spending, we'll see most countries with a deficit on gas/oil imports cutting back.

Interesting to note what the Scottish budget unveiled this week, I fear England may go the same way, but no idea how it is prevented.

Sorry BFYP don't take it personaly I just used your post to make my point. There is no choice to make - its just the rich who dont wish to pay more tax to get us out of the hole they have created - and are making bigger by their profiteering - who want to make the public think there is. Dont get sucked into it.

For example you dont see inflation explained like this in the media:

They tell you that the price of bread rose 22% because the price of flour & electricity rose by 22%. But they don't you that bread & electricity account only 15% of bread's cost, the rest = labour. So, given that wages are stagnant, bread costs rose by 3.3% (15%X22%) = Profiteering!

Because if they did people wouldn't be so willing to let the Tories get away with hurting ordinary people so millionaires can get richer.

All we can do is tell people the truth & break this false narrative that they want to create. The electoral polls will do the rest.

Fair enough on point one.

Not sure I agree on the rest though.  Can't speak for every business but trading is tough, costs are high, profits are down, certainly in my business.  Trust me as someone who has a decent amount of my income company performance based it has been felt.

My experience is wages are up quite significantly, if someone leaves you are replacing them at 10%+ the cost.

Each industry will have unique challenges of course and it's fair to say that actually some costs are not just stable but declining a little.

So the BOE should be doing the exact opposite and lowering interest rates .........  Yes ?

No.

Increase interest rates, reduce disposable income, reduce general demand, reduce upward price pressure.

Standard macroeconomics.

I'm not so sure that's relevant now though. It won't reduce energy costs which are the biggest problem.  But conversely in the modern world how can you not do it when the big powerful blocks have decided to eg the USA?

Of course the boe have gone for it and will lead to a recession no doubt at all.

[tyke1962]

Hmmm some of you are sounding quite like Liz truss, you know the one roundly slammed for bad decision making.

There's not much grumbling from labour that I've seen because they understand the alternatives are tricky.

The only choice is who to hurt the most.

Inflation is high primarily because energy producers are being allowed to charge whatever they want for it during a war and make obsence profits. Interest rates going up will benefit rich savers and bankers.

How will closing libraries, day care centres and reducing the eligibilty for free school meals help this?

Yet there is a choice of who to hurt most!!!! I am afraid it is you who sounds like Liz Truss - help the rich.

I mean I didn't say any of that but whatever.....

Perhaps you should read my points, not too far from BSTs really. Encourage investment and capital spend, discourage unnecessary spending.  I was quite clear that tax cuts for the rich were pointless, they were.  What Liz truss did do was almost open the doors for Sunak to do this because ultimately the markets did not like spending, we'll see most countries with a deficit on gas/oil imports cutting back.

Interesting to note what the Scottish budget unveiled this week, I fear England may go the same way, but no idea how it is prevented.

Sorry BFYP don't take it personaly I just used your post to make my point. There is no choice to make - its just the rich who dont wish to pay more tax to get us out of the hole they have created - and are making bigger by their profiteering - who want to make the public think there is. Dont get sucked into it.

For example you dont see inflation explained like this in the media:

They tell you that the price of bread rose 22% because the price of flour & electricity rose by 22%. But they don't you that bread & electricity account only 15% of bread's cost, the rest = labour. So, given that wages are stagnant, bread costs rose by 3.3% (15%X22%) = Profiteering!

Because if they did people wouldn't be so willing to let the Tories get away with hurting ordinary people so millionaires can get richer.

All we can do is tell people the truth & break this false narrative that they want to create. The electoral polls will do the rest.

Fair enough on point one.

Not sure I agree on the rest though.  Can't speak for every business but trading is tough, costs are high, profits are down, certainly in my business.  Trust me as someone who has a decent amount of my income company performance based it has been felt.

My experience is wages are up quite significantly, if someone leaves you are replacing them at 10%+ the cost.

Each industry will have unique challenges of course and it's fair to say that actually some costs are not just stable but declining a little.

So the BOE should be doing the exact opposite and lowering interest rates .........  Yes ?

No.

Increase interest rates, reduce disposable income, reduce general demand, reduce upward price pressure.

Standard macroeconomics.

So in essence deliberately cause a catastrophic recession bordering on Depression that will completely tank everything other than savings for something that will fall of its own devices and will start falling irrespective in Spring 2023 .

[normal rules]

Some people are now in the position where they have to consider moving their savings  around to avoid the taxman. The Personal savings allowance means that you can only earn £1000 in interest every year before it is taxed. That’s for low rate income earners. It drops to just £500 interest if you are a higher rate 40% tax payer.
May have to look at opening an ISA for Me and the Mrs.

[Glyn_Wigley]

So in essence deliberately cause a catastrophic recession bordering on Depression that will completely tank everything other than savings for something that will fall of its own devices and will start falling irrespective in Spring 2023 .

And if the BOE didn't do this to shore up the currency and target inflation at the same time, what would be the results of unbridled inflation coupled with a collapsing pound be that you're happy to have instead?

[tyke1962]

So in essence deliberately cause a catastrophic recession bordering on Depression that will completely tank everything other than savings for something that will fall of its own devices and will start falling irrespective in Spring 2023 .

And if the BOE didn't do this to shore up the currency and target inflation at the same time, what would be the results of unbridled inflation coupled with a collapsing pound be that you're happy to have instead?

Unfortunately you've fallen for the " there's no other options " .

Which is exactly what they want you to believe .