The Bank of England has raised the UK’s base rate of interest on money lent by financial organisations to five per cent, in line with expectations after the government failed to bring down inflation.

The inflation rate remained at 8.7 per cent in May, due to Brexit, profiteering by firms including energy companies and businesses in food supply chains, and… interest rate rises that have pushed up the cost of money.

The higher interest rate is intended to give mortgage-holders less to spend – but in fact it means we all have less because businesses now factor interest rate rises into the prices they charge us.

It means that, in order to stop prices from rising, the Bank of England has pushed prices even further up.

The very rich will be able to cope with it, of course; they have more money in the first place. And they must have become rich somehow, meaning they’ll be able to make more money anyway.

(They’re probably the people who’ve factored the interest rate rise into their prices and will therefore take more money from us, especially if they have a share in energy firms, water companies or mortgage lenders).

Smaller businesses will go to the wall, of course. They aren’t selling items that are absolutely essential and in a country where wages have been artificially restricted to 2005 (or even turn-of-the-century) levels, people will cut non-essentials out of their spending.

The result: recession. And it’s a recession that could have been avoided if we didn’t have a gang of lunatic idiots running the nation’s finances.

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