This is from the Bank of England statement on the interest rate change decision made yesterday:
At its meeting ending on 5 November 2025, the Monetary Policy Committee voted by a majority of 5–4 to maintain Bank Rate at 4%. Four members voted to reduce Bank Rate by 0.25 percentage points, to 3.75%.
Critically, they followed that statement with this:
CPI inflation is judged to have peaked. Progress on underlying disinflation continues, supported by the still restrictive stance of monetary policy. This is reflected in an easing of pay growth and services price inflation. Underlying disinflation is being underpinned by subdued economic growth and building slack in the labour market.
Look at that last sentence: economic and labour market suppression at the cost to most people in the UK is being used to beat inflation. We are paying the price.
So, what is not mentioned? That's the fact that the excessive interest rates heavily promoted by the Bank of England are, of course, rewarding the City and the wealthy. Oddly, that didn't make it into the press release. It would, of course, be indecent to mention that the Bank of England is structurally supporting growing inequality and economic precarity in the UK.
And so yesterday, the oppression went on.
Why is anyone surprised in that case that Farage is still on the march?
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Labour’s Michael Foot was infamously indicted as writing the longest suicide note in history back in the day.
That was nothing to this slow motion suicide note we’ve had since 2010. Why are we so addicted to self-destruction in this country?
Might the composition of the controlling body of the Bank of England, and its pro-financialism decisions, indicate that, in reality, the U. K is a plutocracy with a mere facade of democracy?
Might our citizenry, and their children, be suffering from “a tyranny of theory” which is “marketed” by using the facade of its being for the ultimate, but undated, benefit of its victims?
Yes, in a word
On the notes, at least 2 indicated they don’t regard the current interest rates as restrictive.
Given many mortgage holders would have purchased their property during the more than 10 years of much lower rates, they absolutely will be restrictive.
5 year fixes are coming up (like mine) where payments are suddenly 25% more than previous payments. More if reverting to a standard rate, where it would be more like 40%. In short, they have no understanding of what is actually restrictive, even though they have the necessary charts to reference.
They also again misdiagnose weak demand as being caused by scarring from previous high inflation. If only there was a society-changing pandemic or something they could reference that might suggest better explanations for changing behaviour… Aside from that, high inflation encourages spending, not saving, so the interpretation makes no sense.
When inequality means the rich have money they don’t need and the poor struggle to buy essentials, demand is weak, not because of some made-up economic scarring, but because more of the monetary supply is ending up with people that don’t need to spend it
Much to agree with
Bailey will be getting a massively subsidised state provided BoE pension.
Why is Bailey so well rewarded for incompetence?
Because he is keeping his mates, in the finance sector in the money. If you are on the inside – what is not to like?
Question: FT apart: why arn’t the UK media attacking this?
Answer: Because they are illiterate, financially speaking (& why would the controllers of the media want UK peasants educated?)
Is “building slack in the labour market” another way of saying “creating unemployment”?
Yes
But that’s the BoE remit – they want ‘slack in the Labour market ‘ to help cool things down. At least, as I understand it , the US Federal reserve – has a remit to maintain employment , and not just to keep inflation down.
The BoE needs fundamental reform.
“Underlying disinflation is being underpinned by …. building slack in the labour market.”
They are saying that, they are intentionally increasing unemployment to appease the gods of inflation. That’s abhorrent, abusive, verging on criminal. These are the appalling people controlling our economy!!!!
Bank of England forecast growth of 0.3% in the third quarter. Interest rate 4%. R>G (see previous post on Thomas Piketty). Growth in inequality continues unabated. 🙁
When challenged with the fact that more and more people are experiencing economic stress, and what to do about it, I suspect most Bank of England economists would think it a good thing, and advise piling the stress on more. At the very least they would have zero idea about a remedy.
Studies of old, some from here in Sweden, show that economic stress increases risk of heart disease and early death.
Economics at that level is truly a dark art.
I have never been able to get my head around NAIRU.
The gobsmacking immorality of deliberate policy that involves all the misery, desperation and sheer inhumanity of unemployment, purposely contrived, is beyond words.
Agreed
Richard,
Thanks for quoting MPC mtg minutes. For many on this blog it will be obvious what the BoE has been doing but to see it in black and white still makes the blood boil.
For those that care about our people and the country the behaviour of Labour is incredibly disappointing.
As you say Farage/Badenoch will be smiling at the outcome.
BoE manadate could have been revised on entering govt now short of a painful recession I struggle to see it happening.