I’d like to think that those in charge know what they are doing, but when they justify the action, one that will plunder more families into poverty, you have wonder. Their justification was that gas prices have risen due to Russian supply restrictions. Darn those pesky Russians – eh? No, what the flip has that got to do with our economy? It has the opposite effect to that of adding to inflation: rising fuel and gas prices, takes peoples spending money away, a deflationary effect. So this is no justification at all. The inflation is caused sole yen by external factors, not least fuel costs, not by UK wage driven demand. All this and the other 2 further planned interest rate rises will do is dampen down the construction industry. As one of the industries leading the UK out of Covid induced recession, that seems like an own goal. One that will place a lot of families in greater financial misery, fuel poverty, and in a cold and damp house, more susceptible to Covid and the gamete of illnesses we are facing post lock-down.
It does not seem to make any sense. The inflation is not domestic driven, but caused by shortages as a consequence of the pandemic and inter-country politics. So why punish the ordinary people doing their work and living their lives? I am astonished at the timing, and feel this only plays into the hands of the wealthy, who can carpet bag the assets of the poor as they get into mortgage debt difficulty.
Now is the time for stimulating the economy to create growth and ensure businesses survive the debts of the Covid period, and not get put out of business by increased debt costs. Is it me or am I in a parallel universe, but there are some very odd decisions being made on our behalf: ones that don’t seem to be made to make us safer and wealthier, but instead – just those with the power.
It is time to say No to this madness and demand that the government and Bank of England start helping business – and families, and stop bleeding them. I am not intending to be political here, but instead speak for common sense and decency of decision making. Inflation will fall naturally when the fuel price rises fall out of the index, but keep raising interest rates and they’ll kill of any post Covid recovery, like the disease itself has done to so many of our loved ones.