The theory is that high interest rates will bring inflation down - once they are down the market is already predicting that rates will drop to 2% - so the era of cheap money will continue...
It seems to be working, but no better here than it is on the continent and USA, where inflation is already lower.
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How are they going to control both at the same time. Govt underwriting high risk retail loans, quantitative tightening?
The theory is that high interest rates will bring inflation down - once they are down the market is already predicting that rates will drop to 2% - so the era of cheap money will continue...
It seems to be working, but no better here than it is on the continent and USA, where inflation is already lower.