RE: Base rate.22 Jun 2023 11:05
Park/jim
''Jimbo, i agree....raising rates is simply fuelling the fire.''
No, the problem was that the base rate was not at 5% back in January and 6% now.
The FED had a faster rate of increase, which has allowed a pause in increases.
A lot of our problem has come about due to keeping base rates at extremely low levels for year after following the financial crash - a mistake.
In addition we had a lot of giveaways as part of furlough schemes, a number of which I imagine were fraudulent claims by 'business'/individuals putting money into the economy in addition to a long period of QE which became additive.
The level of wage demands has also not helped.