Bank of England cuts interest rates to lowest level at 4.5%

They still owe savers the 20-40% inflation they caused with the covid-19 nonsense money printing.

Ah yes, COVID money printing, it definitely wasn't mostly related to the massive spike in energy prices in 2022 and the indirect effects this had on the broader inflation basket...

Because printing hundreds of billions of pounds and the low interest rates prior to that had no effect?

The economy is a large dynamic system, everything has an effect. But I would say those factors played a very minor role in the inflation spike in recent years. Interest rates were at rock bottom since 2008, why would that randomly start to cause an inflation spike in 2022 when interest rates started rising? Moreover, COVID government spending mainly softened an output gap, it wasn't creating excess demand in the UK.
When you look at the actual consumer price index and the contributions to it, the spike in inflation mainly came from the energy category in 2022, then the indirect and second round effects of this on high energy intensive food and core categories. None of that points to the impact of past low interest rates or government spending during COVID.

Because printing hundreds of billions of pounds and the low interest rates prior to that had no effect?

"Bank of England cuts interest rates to lowest level at 4.5%"
Surely 0.1% was the lowest level in 2020?

says since 2023

The title doesn't.
So in 18 months then?

it literally says since 2023 u can read it- the title doesn’t matter as it expands it in the post

Clickbate then?

I assumed people had enough common sense to see that the title is expanded in the post - as I tend to normally do. Evidently, lacking in some places.

I assumed people had enough common sense to see that the title is expanded in the post - as I tend to normally do. Evidently, lacking in some places.

Now the debate is going off in two directions.
Whether the money printing has caused inflation or do you think that the money could go on forever without any negative effects.
Whether the state has caused inflation with it's other actions.

If high headline inflation was caused by domestic money printing, it would predominantly manifest itself via high services inflation.
Yet what we actually saw was gradually rising core goods prices (due to COVID supply chain bottle necks), then a spike from the energy category after Russia's invasion of Ukraine, then the second round effects this spike had on the rest of inflation basket due to a tight labour market and higher inflation expectations.
Moreover, money printing wasn't going on forever. There was a bit after the GFC, which didn't cause an inflation spike given the size of the output gap. Then there was a little during covid which has since been unwound via QT.

Why do you think it would manifest itself via high services inflation or that low interests rates haven't contributed to problems?
There was a special name for the types of problems it creates but I can't remember it at the moment.

The Bank of England has cut interest rates from 4.75 to 4.5%, their lowest level since 2023, and marks the lowest level of the cost of borrowing in 18 months.
The Bank anticipates that the UK economy will grow by 0.75% in 2025 before accelerating in 2026.
https://www.itv.com/news/2025-02-06/bank-of-england-expected-to-cut-interest-rates