I understand that.

The inflation we are currently seeing is underpinned by rises in global energy prices. This stems from the conflict in the Ukraine. This is a transient issue rather than structural. It would seem to me that the better option would be to very rapidly ramp up military support for Ukraine so that they can put Russia in a position where it seeks an end to the war. I expect the opposite to this tbh - Ukraine to be pushed to concede territory but can't see them giving up readily.

The US rate hike - especially in the context of -0.9% GDP drop looks like a recipe for long term recession + inflation.

My guess is that BOE looking at inflation as transitory and trying to keep growth up and deal with the pain of high energy prices in the sorter term.

What do I know. I'm not an economist.

Posted By: Timmy_Goat, Jul 28, 16:29:00