Inflation springs from rising import prices, due to the plunge in sterling caused by Brexit – not from rising wages, which are stuck at little over 2%. Raising rates will hardly affect foreign prices – sterling may plunge again if the Brexit deal looks bad.
Raising interest rates does raise the value of the £, all other things considered.
We’ve told you before not to get your economics from Richard Murphy.
Just about everything done in the past seven years of taxing and spending has dug a deeper hole in the national finances and in most people’s pockets – apart from the soaring number of super-rich, beneficiaries of quantitative easing that sent mostly untaxed wealth and property sky-high.
Raising interest rates will aid in reducing those asset prices pushed up by QE.
Raise the top rate of income tax: latest research quoted by tax specialist Richard Murphy shows a top rate of 60% would aid growth.
Told you the source of this.