Interest Rates Are a Blunt Tool Hurting Working People

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Now, higher interest rates mean government borrowing is much more expensive, and taxpayers have to foot the bill. But it doesn’t have to be this way. The government could manage inflation in much more targeted and effective ways through, for example, taxing the big corporations that have been profiteering through the cost-of-living crisis, or by more directly controlling how commercial banks issue credit.
Instead, the British state continues to rely on the blunt tool of higher interest rates, which lead to higher bills for working people struggling to make ends meet as well as higher interest payments on government debt.

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