The government and the bank of England are in a tug of war

[PupInAPram]

The government is making ridiculous tax cuts to put money in our pockets to spend more and 'grow' the economy. The Bank of England is raising interest rates to make us spend less and slow inflation. What the actual hell is going on. We are hooped. URBU that's not how the economy works
URNBU the government has no idea what they are doing. We are all fooked.

It does feel like they are working against each other.

They aren't raising rates to slow inflation. The inflation mandate they are supposed to keep to is 2%. Inflation is at 11%.

If they were raising rates to combat inflation, they would be a lot higher and not at the puny 0.5% increments we are seeing atm.

They are raising rates at the absolute minimum they think they can get away with given the fact that everyone else (ECB, Fed) is raising rates too.

Judging from the 10 year gilt performance and the GBP:USD price (down 3c against the dollar today), the miminum they think they can get away with may need to be recalibrated :)

Any takers on when the Gov will very quietly change how they define inflation when they realise this isn't working....