Bank of England raise interest rates by 0.5%

Thoughts, ROF?

Good comment on FT here by someone who has shown BoE being consistently wrong on inflation for the last couple of years. 

Also, is the policy of hiking interest actually very helpful in tackling the current inflation given that it isn't due to people having surplus cash, but instead due to energy and food price rises? Seems to just be making things harder for people, no?

"After looking at the likely supply of workers, low business investment and trade weakness, BoE officials think the UK economy cannot expand even at a 1 per cent annual rate without generating inflationary pressures."

Well done tories for hamstringing the economy 

Few more raises, then a pause over the summer/autumn. The housing market will be destroyed in certain areas/types (which arguably is needed).
 

I wouldn’t expect rates to come down until 2024 earliest, or when something breaks, and even then only very slowly. 

The most lollersome section of their latest work of fantasy is their recession prediction. I expect "it will be v. long because of us." didn't make the second draft. 

The US is a strong economy with competent central bankers. Ours is in the toilet with current inflationary pressures incapable of being controlled by interest rates, and fooking idiots at the monetary wheel. 

Also agree that the worst is yet to come for house prices.  It always takes a while for sellers to start accepting a loss from previous highs, and mortgages around 5-6% are killing affordability at every level.

Jeremy khunt was out whining about pay rises and inflation again today.

That is exactly what we want you bastard. Give everyone pay rises and put up interest rates to counter inflation - with the added benefit that assets become affordable for younger generatioms.

Really sorry if the portfolios and houses of your wealthy backers and pensioners fall in value.

Its depressing nobody calls this out. Its a really simple choice. Who pays for rhe clusterfook of the last 6 or 7 yrs (and indeed longer policy failures in respect of the demographic crisis everybody but our idiot political class could see coming)?

Workers or Owners?

Workers obvs. But all the while they continue the policy of making workers pay things wiill get shitter as workers give up/retire/avoid/evade etc. The Tories - along with rhe rest of our political spectrum - seem to be very bad at spotting a Laffer curve when its smacking them repeatedly in the face.

Won't work like that though CW.

You need to put interest rates up before inflation spirals to steady the rate of gain. Then two years on you want wage inflation when people are used to tight belts. That way there is a steady levelling off and a solid economy.

What we have had is massive amounts of free money, then wage inflation, then actual inflation. Now we have deflation and probably a recession and it is going to start getting sever.

The BoE massively overspent on QE turned the tap off far too late in Nov 2020 and npw they've gone far too far the other way.

Cookie you might want to spare a thought for young adults who saved like hell to afford a deposit to get on the ladder only to find themselves facing negative equity, but i know you wont because youre an embittered old prick with an entitlement problem