I spent many a Saturday in my first 1970s Saturday job (the Coop in Selsdon, fyi) repricing just about everything in the shop. And in my first proper job, I had a ‘cost of living ‘ pay rise, negotiated by the union, every 2 months. Interest rates, as interesting to me then as a Mantovani record, were as double-digit as the inflation rate. So don’t talk to me about 3% inflation rates. I come from an age when men were men and wage-price spirals led to Winters of Discontent. Hiking interest rates won’t help when the problems are the Brexit £ and Saudi oil prices. Just say no, Mr Carney.
“Should we still be worried about inflation?”
As rehearsed here many times, inflation, and mainly the US version, is the key to a revival in the fortunes of your and all of our investments. For responsible countries wanting to tame it, increasing interest rates remains the principal tool.
