The UK currently has a cost of living crisis. Inflation is going through the roof and the only think being done to influence this is to put up interest rates! The argument for this is that if credit becomes more expensive people will reduce what they are spending. Are economists so stuck in 1970’s models that they can see nothing else?
Credit card use is not rising because credit is cheap, they are rising because costs are escalating. Adding to the interest on mortgages and credit cards won’t help control this. This will drive workers to ask for larger pay rises and will fix the interest rate growth as permanent.
Fuel price rises have a massive effect across the whole supply chain. We had protests in the UK when petrol first reached 1 GBP per litre, we are now at around 1.85 GBP.
We have a leadership contest going on between two people who are denying reality and aiming for the votes of a very small electorate. Neither candidate has a sensible plan (or indeed a mandate). One wants to control inflation and the other wants to cut tax.