Mixed messaging

[doggone]

So ... inflation is too high and interests rates have risen quite substantially but still at historically very low level.
The purpose of this is to reign in consumer spending thus slightly reducing demand and reducing inflation pressure.

Meanwhile recession is looming so Govt decides tax cuts are needed so that people feel less under pressure and have more money to spend.

Surely both tactics can't be deployed successfully at the same time.

[Polarbear]

Bank of England worried more about inflation and the gov more worried about recession I suppose. Bank of England are independant so can do what they want irrespective of government policy.

Will it work? Not got the foggiest but I would think interest rates would have to go up quite a bit more to have an effect.
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Triumph Trophy Launch Edition

[KiwiBob]

You have misunderstood the Government plan! ... It is boost the bank balance of the wealthy!

[Tierbirdy]

The peasants get a 1p cut in income tax.

The top earners have the 45p income tax rate abolished.

Something something trickle down economics, good for the country, know your place gutter dwelling peasant.

The Tories havent let the mask slip, theyve pulled it off, burnt it and spat in the nearest street urchin's face. They know their time is likely up, so fuck the peasants, make their rich mates as rich as possible in the time they have left.

[chickenstrip]

By this stage, I think any policy is a gamble. All will have upsides and downsides - it's the devil or the deep blue sea.

Apparently, technically we're already in a recession. Hardly surprising given all that has been going on in the world.
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Chickenystripgeezer's Biking Life (Latest update 19/10/18) Belgium, France, Italy, Austria tour 2016 Picos de Europa, Pyrenees and French Alps tour 2017 Scotland Trip 1, now with BONUS FEATURE edit, 5/10/19, on page 2 Scotland Trip 2 Luxembourg, Black Forest, Switzerland, Vosges Trip 2017
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[Polarbear]

Financial institutions are not impressed but I'm not sure if they like anything that isn't the 'norm'.

Maybe Truss & co want to spend everything then when they lose the next election they can leave a note saying 'there's no money left' just like Labour did to them.

I have to say I've always condemned Labour for spending from the magical money tree but the Torys have surpassed them with this and I'm personally not impressed. They are meant to be the financially astute party and I bet Richi Sunak is cringing as well.
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[Kawasaki Jimbo]

[Jmoan]

Bank of England Independent or independent ?
The state are literally stealing peoples savings while workers want increased pay for jobs that could easily be scrapped compounding the problem.