Tory leadership contest and cost of living crisis.

[Ricardothesnowman]

I am trying to understand something so if anyone who is good at economics can explain it I'd be most grateful.

Firstly, the Bank of England have put up interest rates.
I understand this is to stop people spending, encouraging saving, and therefore bring down inflation.

However, inflation in this instance isn't caused by general spending, its caused by the hight price of fuel and energy. So most people won't be able to cut their spending.

So does this strategy work in this instance?

Secondly, if Liz Truss cuts taxes, thus giving everyone more cash in thier pocket, does this not work exactly against what the bank of England is trying to do?

For clarity, I am not a Tory member, so have no vote in the selection, just an interested observer .
Thanks

yes I think you're correct. I think Truss is just throwing that policy out there to get voted in but it doesn't make economic sense.

I thought i was missing some explanation, but perhaps you are right, pisspants.

Don't Pay UK may be something y'all can consider to solve the energy bills crisis

sustain-able.medium.com/record-energy-bill-price-hikes-are-pushing-more-members-of-the-public-to-refuse-paying-their-bills-b99bbad893cd?sk=27a991aee47c3edd9b08a6eece09f3e2