The Economy of the UK

jeudi 4 août 2022

Can someone please enlighten me?

We have just had the Governor of the Bank of England trying to justify his announcement of another 0.5% increase interest rates.

He was asked why.

His reply blamed the energy crisis that is set to cost every household £3500 by the end of the year, and so has fed inflation.

This level of cost is taking vast sums of cash out of every household in Britain, so it seems the governor thinks that the old remedy of raising interest rates is going to solve the problem.

This is going to take even more money out of the household budgets if you are a home owner with a mortgage, so how is this going to help?

We also have a lightweight candidate for PM, like Truss, who is likely to be the chosen one, to cut taxes, in opposition to the Bank of England, to give generous tax cuts, to put money back into households again.

This for me, seems totally irrationally counter productive, and displays a dis-jointed policy that will all end in tears.

Can somebody on here give me, and anyone else who cares, some hope that this will not turn out to be the disaster it is likely to be.


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