Vocal Voices

and there is no way he can stop it. But he's going to raise interest rates and "bring it back down to the 2% target".

I'm a bit mystified by all of this bravado. I know he's got to say something but, in the long run, all of the drivers for inflation are external. Whereas his interest rate rises are designed to control inflation from internal drivers.

The only thing I can see this doing is to drive up the value of the £. This, of course, will reduce the impact of the rising prices in the rest of the world as the £ would continue to rise, slowing the import price inflation by devaluing the cost of the imports.

If it doesn't cause a major recession first and trash the value of the £, completely undoing all the work by raising rates.

What and digest I think.

There was a clip of the interview he did with Beth Rigby and he did not sound very sure of himself.

His description of the coming food price rises as being "apocalyptic" was a bit infantile.

The BoE can only raise rates so far before they also become part of the problem so it is caught between the Devil and the deep blue sea.

Maybe we will all just have to tighten our belts for a while and try to ride it out.

Workingman wrote:Maybe we will all just have to tighten our belts for a while and try to ride it out.

Probably. However the warning should be taken to heart and preparation made to support the most vulnerable. Not sure it will be, given certain ministers idiocy, but it should be.