ICYMI, more British economic stupidity: the Bank of England has raised the base rate to 4%, as the UK working class is already struggling with debt and the cost of living. Interest rates are usually raised due to inflation caused by accelerating demand and spending, the exact opposite is happening now as real wages in the UK continue to fall. Inflation is overwhelmingly driven by supply shocks: the US and Israel's war in Iran and the damage to the energy infrastructure, British sanctions on Russian energy (self-sanctions) and Ukrainian attacks on Russian refineries. Raising interest rates will do nothing to stop inflation, and will only cause lower investment, a worse cost of living crisis and even higher costs for small businesses. All indicators show UK aggregate demand and consumer spending falling behind inflation. Either the officials at the Bank of England are foolishly following the economic example blindly, or they are deliberately exacerbating the cost of living crisis and the economic misery experienced by millions. The British people are struggling and getting poorer, and the Bank of England is speeding up the process.

ICYMI, more British economic stupidity: the Bank of England has raised the base rate to 4%, as the UK working class is already struggling with debt and the cost of living. Interest rates are usually raised due to inflation caused by accelerating demand and spending, the exact opposite is happening now as real wages in the UK continue to fall. Inflation is overwhelmingly driven by supply shocks: the US and Israel's war in Iran and the damage to the energy infrastructure, British sanctions on Russian energy (self-sanctions) and Ukrainian attacks on Russian refineries. Raising interest rates will do nothing to stop inflation, and will only cause lower investment, a worse cost of living crisis and even higher costs for small businesses. All indicators show UK aggregate demand and consumer spending falling behind inflation. Either the officials at the Bank of England are foolishly following the economic example blindly, or they are deliberately exacerbating the cost of living crisis and the economic misery experienced by millions. The British people are struggling and getting poorer, and the Bank of England is speeding up the process.