To expect the govt to control inflation

[Janeypj]

With inflation at 5% nearly double from previous years, how are people supposed to meet living expenses! Plus the cost of fuel! AIBU?

@Tal45

I was a child in the 70's and my little bit of savings actually made decent interest, it was fantastic! Now you make absolutely nothing. We don't have a mortgage but have savings that make nothing so I'd love to see interest rates go up to something reasonable.

Except the rate of inflation was still above the rate of interest so the value of your savings was still falling. Even 15% interest is poor if inflation is 16%+.

Inflation is happening around the world. In some countries are higher than here.

Well they are certainly intertwined since they are owned by the government. But their remit to adjust interest rates is independent and free from government interference to achieve the inflation target. So I just didn't think it was accurate to say that the government should raise interest rates.

No I know on paper they are independent in terms of monetary policy. I just don't think they do have autonomy because of QE, the government debts they hold & the indemnities from the government.

"At the current level of national debt, roughly £2trn, every rise in rates by one percentage point pushes up the interest paid by the government on its bonds by £20bn per year over the long term."