Globally, there’s a scarcity of fossil fuels like oil and gas as a result of the war in Ukraine, an increasing demand from booming economies after the Corona crisis, and there’s a scarcity of goods like building materials, chips, etc. caused by massive supply chain problems resulting from the zero-COVID policy in China which all lead to higher prices for the consumer.
the way I see it is interest rates should be a lot higher so those of us that have savings to get a better return on their money. Every thing at the moment seems to be in the favour of those who can’t afford but still go out and buy unnecessary items. If it wasn’t for the many who put their money into government saving schemes the country would be in a far worse financial position
As for foregn inflation that depends very much on each counties financial position more than the UK inflation rates
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Hi
Raising interest rates is a very blunt weapon when inflation is caused by external factors.
It does however ensure that the very rich make more money.
As these people are huge donors to the Tory Party, it should not be a surprise.
@Bruce , My question was ‘how do UK Interest rates affect foreign generated
iinflation’ Brucy ??
Pay more attention !!
Donkeyman! 
Comprehension has never been your strong point Assman, I told you how it affected it, please read what I said.
@swimfeeders , At last, l have an answer that makes sense,( oh and
Spitty too,sorry spit !!)
Swimmy should have included the banks that the government borrows from
in the ‘very rich’ though ? These banks may or may not be Tory donors but
they are all formed of groups of low profile but very rich individuals and their
business consists of funding governments ( any government ) with long term
usually low interest money from their private funds which sit in their
private banks! These private banks used to be called ‘the reserve bank’ and
are supposed to be controlled by central bank (BOE) which sets the interest rate these banks can charge the government and also prints more
money as is deemed fit,( by who?)
Surely this system is open to collusion between the central bank and the
lending banks which enables the lending banks to enter into a deal and
then later increase the rate and thus doubling ortrebling their profits??
Hence my remark about me being paranoid ??
Donkeyman!
@Bruce ,But as the price of imports increases it also reduces demand
and therefore raising interest rates should be unnecessary, in fact it could
be detrimental ??
My question stands !l
Donkeyman! 
What is the difference between the UK and private banks. Aren’t the latter part of the UK, too? The BoE doesn’t borrow from private banks but vice versa: private banks borrow from the BoE and hand out the money as credits to the consumers at a higher interest rate.
Excessive government spending increases interest rates. The BoE raises the base or bank rate when the inflation rate (speed of inflation) is too high to make borrowing and spending more expensive so that demand gets cooled off and prices (inflation) go down.
@Dachs , Thanks for the input Dachs ! I think you have got the retail banks
mixed up with the the private investment banks ??
The retail banks serve the purpose of issuing credit to the man in the street
and they do get their money from the BOE !
The investment banks run on ‘real’ money which is pre-existing, this money
is sometimes called old money as these banks have held this money for
a very long time, obviously with decades of lending to government this money has grown and they now have huge amounts between the lot of them !
At the present moment UK Public debt stands at about 2 trillion?
When Boris borrowed it the rate was •1%
It has just gone up to l think 1•75%? Imagine the increase in profit for the
‘private’ banks ??
Hence my queries !!
Donkeyman! 
Late to this thread.
The Bank of England does not lend or borrow money. It is the UK’s Central Bank. This link, from the BoE’s website, explains its raison d’etre.
@Percy_Vere , Cor blimey Percy, you are late mate !
I understand the workings and explanations of what the the BOE
is supposed to be doing. But my question was whether the Boe was
working for the best interests of the british people when it raised interest
rates recently just after the government had committed the country to
borrowing probably the largest ever sums of money we have borrowed in
my lifetime anyway ?
As l said earlier, we borrowed this money from private banks and investors,
who will now benefit from the higher rate of interest !
Surely the BOE should have lowered the rate if it has the best intrests of
the country at heart ??
Hence my question ! Which nobody has answered yet to my satisfaction ?
Donkeyman! 
There are many questions on this subject, and some others that can’t be answered to a persons satisfaction.
Of course DM, as usual, no one knows who (if any) is in charge of the agenda, if indeed there is an agenda!!
Have you taken into account that the BoE is relatively independent from the government which implies that she may take decisions that, at first glance, may not be " in the best interest of the British people"? (Who are the “British people” anyway and what are their “best interest”?) Would it not be in their best interest to keep inflation down and thus ensure the stability of money?
My take is that the BoE, like any central bank, has to decide between the devil and the deep blue sea because there’s a flipside of measures taken. Weighing up the pros and cons and having identified excessive money supply and public spending as an important cause of the current inflation, she will raise interest rates to make borrowing and (public and private) spending more expensive which is necessary to curb inflation even though it may have negative effects on businesses and private consumers (the British people as you call them) in as much as it leads to higher prices and less business activity.
The old Lady does so in order to pursue her primary goal: to keep inflation down which clearly is in the interest of the people. The BoE raised interest rates despite high levels of public debt and debt servicing in order to ensure monetary stability and to discourage the government from incurring even more debts e.g. by issuing government bonds. Why should banks and other investors not benefit from higher interest rates? These are the rules of the game.
The BoE will lower interest rates when economic conditions force her but not because government wants her to do that. As indicated above, the BoE is not the accomplice of the government.
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Hi
Raising Interest Rates also stops the £ falling, a poor exchange rate imports inflation.
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@Dachs, So you agree that the BOE is acting in the interests of the
bankers then Dachs ??
More so as it is common opinion that inflation has been caused by the sudden
jump in imported fuel prices, and not because of an oversupply of money ?
Rather the opposite in fact !
Hence my question about why the bank raised the rate ??
And if the bank is actually in cahoots with the banks to manipulate things
to go their way ??
Donkeyman!
What other choice do they have? The only tool they have is interest rates, when the only tool is a hammer then all the problems are nails.
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@Bruce , HA! HA! Yes, but what about the Pratt using the ammer ??
Dont he/she have any inputs ??
Have you seen how some blokes use a ammer !!
Donkeyman!
God, been saying this for yonks, there are no more tools in the toolbox.
And the tool that is there is no longer applicable.