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Post by colbops on May 11, 2023 15:19:18 GMT
For the 12th time in a row the Bank of England has increased interest rates.
Inflation remains stubbornly high, the previous 11 interest rate hikes have done nothing to bring inflation under control.
Why does the Bank of England believe that interest rate increases is the right lever to continue to pull when:
1) it hasn't worked so far
2) inflation doesn't seem to be driven by discretionary spending
3) price increases seem to be driven in the main by energy costs and other international drivers that UK interest rates cannot and will not influence
4) Interest rates only seem to stoke further inflation because it is further increasing costs for businesses and they pass that on in order to protect profit margins.
Can anyone explain the logic as to why interest rate increases are likely to reduce inflation and is a sensible strategy in the current economic climate?
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Post by Pacifico on May 11, 2023 17:01:33 GMT
The BoE are over-compensating for having fucked up before - It seems to be a desire to get back its credibility.
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Post by Fairsociety on May 11, 2023 17:36:56 GMT
Any wonder when the BoE boss was a reject as CEO of FCA, who fucked up multiple times when he was told point blank peoples pension pots were being raided by fraudsters, he was given names, address, and failed to act until the fraudsters had cleared the accounts of millions of unsuspecting pensioners.
"The Bank of England Governor, Andrew Bailey, has come under fire for falling asleep during a meeting about a huge pension mis-selling scandal while working for the City regulator.
Mr Bailey's "head dropped and his eyes closed" during a hearing about the British Steel pension scheme scandal that cost some steelworkers up to £489,000, according to those who attended the 2019 meeting with the ex-Financial Conduct Authority (FCA) boss.
Al Rush, an adviser who represents ex-British Steel pension scheme members, told the Financial Times: "Bailey just kept falling asleep. We were trying to put across a serious point.
** They put this incompetent buffoon in charge of people's houses and savings ............ FFS
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Post by om15 on May 12, 2023 8:14:55 GMT
I'm very pleased, part of my pension income is derived from the interest of tax free ISAs, I am about 11K better off per year.
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