UK Adopts The Dismal Science

The UK is currently in a mess.

Brexit is clearly a failure. We have a cost of living crisis.

For bizarre technical reasons the amount paid on a mortgage is not counted towards inflation.
This means that in reaction to a rise in inflation (which hit 10.5% in December 2022) the Bank of England have been reacting by raising interest rates.

This is the only lever that they have to get inflation back down to 2%

The problem is that the economic theories that are being used belong to the 1950’s and 1960’s.
The inflation is not caused by an overactive economy lead by borrowing, this time it is caused by unregulated energy price rises and the damage caused by incompetent Truss administration.

Raising interest rates now makes credit cards more expensive at a time where the majority of the population are being stretched by rising costs.