Intended outcome?
Problem: Inflation is still high.
So...
- banks are putting interest rates up.
So that...
People will spend more on their mortgage.
And so...
Have less money to spend on the high street/in leisure activities in order to cause a recession to flatten inflation.
Which will mean...
Some people will lose their homes.
Some businesses will shut.
Some people will lose their jobs.
How will this bring inflation down?
Are the above just collateral damage?
I genuinely don't understand the strategy and I'd like to. I'd like to know what the end game is here?