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

I think its good that it is coming down.
Yes, we wont get as much interest on savings. But the cost of borrowing is coming down nicely.

It's a pretty sensible assumption to make that 'money printing' would manifest itself primarily in services inflation and possibly a bit in core goods inflation. To think otherwise requires some very strange logic, namely that money printing in the UK would push up international oil, gas and food commodity prices. It seems pretty reasonable to assume domestic money printing wouldn't cause a spike in parts of the CPI basket that are typically externally driven.
I think maybe rates were a little lower than they should've been, but the difference is small. Rates were low because growth was low. If money printing was the issue you would get extremely high nominal GDP growth and inflation after QE and we didn't see that. After COVID QE, we only saw inflation start to pick up sharply once Russia invaded Ukraine in 2022, which caused a spike in the energy component of the CPI basket, rather than core inflation (where the effects of excessive QE would show up).

And lower interest rates should help boost prices too. Not just everyday stuff like fuel, groceries and personal electronics, but house prices and car prices should get a boost too so that's good.

All other things being equal, increasing the sterling money supply should increase oil, gas and food commodity prices as sterling depricates relative to international currencies.

Please help your sentence make sense in my head. Lower interest rates should boost prices?
I think the BoE will reduce rates again yet.

Please help your sentence make sense in my head. Lower interest rates should boost prices?
I think the BoE will reduce rates again yet.

Yes, when the cost of money reduces, prices tend to rise.
Why'd ya think they raised interest rates?

I wasn't sure if you meant inflation in general or specifically prices of goods/services in retail terms.
I am not so sure the price of anything is automatically linked to the interest rates, I would suggest higher interest rates actually increase the cost of doing business and make prices higher which tends to make demand ease. Cars are a classic example because so many are bought using finance. A few clicks of the knob on interest rates can soon make people pay a lot more per month for their vehicle and that curtails their other spending pretty quick.
Meanwhile, lower interest rates seem to stimulate demand by making borrowing more affordable. That being said, the price/value of a house is dependant upon whatever the market believes it is worth and what a buyer is prepared to pay.
In reality it is a very crude way of controlling the economy but it is used because it's politically expedient.
I still feel the interest rates will fall again yet, out and about I'm not sure the economy is in that great a shape. Lacklustre would be my adjective.

I wasn't sure if you meant inflation in general or specifically prices of goods/services in retail terms.
I am not so sure the price of anything is automatically linked to the interest rates, I would suggest higher interest rates actually increase the cost of doing business and make prices higher which tends to make demand ease. Cars are a classic example because so many are bought using finance. A few clicks of the knob on interest rates can soon make people pay a lot more per month for their vehicle and that curtails their other spending pretty quick.
Meanwhile, lower interest rates seem to stimulate demand by making borrowing more affordable. That being said, the price/value of a house is dependant upon whatever the market believes it is worth and what a buyer is prepared to pay.
In reality it is a very crude way of controlling the economy but it is used because it's politically expedient.
I still feel the interest rates will fall again yet, out and about I'm not sure the economy is in that great a shape. Lacklustre would be my adjective.

President Erdoğan has a job opening for you.
Interest rates are used because it's politically expedient? What do you mean be politically expedient?

I don't think anyone is suggesting that prices are automatically linked to interest rates.
I'm not really sure what most of your post was all about, to me you just explained why higher interest rates lower prices across the broad inflation basket, and why lower interest rates can increase inflation - this is widely accepted theory already?
It's true that interest rates are a blunt instrument, but it's not about politics - central banks are broadly independent in advanced economies like our own. They're just given a mandate (e.g. an inflation target) and granted the power to use a very select few tools to achieve the job. I don't think it's fair to say that how they change interest rates is for political expedience.
The BoE will vote to lower Bank Rate by 25bps on Thursday and signal that it may actually pursue a more aggressive approach to cutting rates at subsequent meetings given the hit to growth from US tariffs.

You wrote, if I am not mistaken, lower interest rates boost prices or words to that effect? I am still not clear if you are talking about inflation or the prices of goods/services here.
I argued higher interest rates increase the cost of doing business, increasing prices and thus curtailing demand?

I was replying to someone else where their exact meaning confused me.
Higher interest rates= higher prices and hence a reduction in demand. I think(?) everyone agrees with that.
But lower interest rates/cost of money reduces and this in turn boost prices? I'm not sure I agree with that statement, hence my query.
Anyway, yes, interest rates are a politically expedient way of controlling the economy. Yes, the BoE in theory changes them but only because the government don't want to cop any political ill wind if any decision turns sour, which of course has happened a bit in the now more distant past until it was changed, due to... political expediency.

I'm talking about inflation. CPI, CPIH, RPI...
You have a point, but we don't have a measure of inflation which includes changes in the cost of money.
Businesses finds it more difficult to put through price rises if their cost of borrowing has increased. In no small part as different businesses have different amounts of leverage. More highly leveraged businesses come under pressure with higher interest rates and go bust.

Take house prices.
I have just over £100k in the bank and £20k in premium bonds.
I could buy a freehold property without borrowing.
Other people may want similar properties but need to borrow to do so.
If interest rates rise then the cost of buying a house at the same price goes up for those who are borrowing. For me with cash to cover the purchase the opportunity cost of the missed extra interest that would be foregone from keeping the cash in the bank/premium bonds reduces my propensity to pay what I would previously bid.
Demand is reduced as there are fewer bidders and remaining bidders have lower offers.
The price of the house falls/goes up less as a result.
I think you're implying the cost of money / the mortgage should be included in inflation.
Edit
Or put more succinctly, higher interest rates are a deflationary pressure on prices of goods and services. It increased the cost of debt.

I was replying to someone else where their exact meaning confused me.
Higher interest rates= higher prices and hence a reduction in demand. I think(?) everyone agrees with that.
But lower interest rates/cost of money reduces and this in turn boost prices? I'm not sure I agree with that statement, hence my query.
Anyway, yes, interest rates are a politically expedient way of controlling the economy. Yes, the BoE in theory changes them but only because the government don't want to cop any political ill wind if any decision turns sour, which of course has happened a bit in the now more distant past until it was changed, due to... political expediency.

You were talking about inflation. My mistake. You seemed to be saying that lowering interest rates boosts prices which made no sense in my head hence asking you about it.
Leverage of business isn't really here or there though: it has little reflection on the ability of your consumer to stand higher prices and ultimately the market will only pay what the market considers a fair price for any given product or service, how much debt the supplier/retailer is carrying is their own business in reality.
Interest rates are as such a very blunt tool as you're basically attempting to limit demand by increasing the cost of doing business or borrowing money. And the first thing that is going to hit is people considering home ownership or people (and businesses) buying cars or other assets with finance.

Not at all: whatever measure of inflation you choose is only a crude estimate and the items they choose to include are often a bit dubious.
I agree interest rate hikes make goods/services more expensive, particularly where finance is involved in financing their sales.
I'm not sure the BoE has quite the latitude it maybe once did though given the way in which the economy is carrying a lot of debt in some cases. and if they get it wrong of course...we are back to politics again.

Sorry, what's the difference between inflation and rising rises?
[in your head]

I didn't pick or mention and inflation measure in the post you quoted, I said 'take house prices'.
In what way is Land Registry / NRS / Whoever logs housing transactions in Northern Ireland date 'a crude estimate'? Surely it's actions with 100% sample size?