How does increasing the interest rate control factors such as oil and energy prices?

[motownjunk]

If the UK offered a more sensible rate of corporation tax companies wouldn’t feel the need to park profits in other countries. Sometimes less is more!

Our corporation tax is pretty low compared to most countries. I don't think reducing it radically would be a good thing.

 

[NYboro]

Our corporation tax is pretty low compared to most countries. I don't think reducing it radically would be a good thing.

What's actually needed is taxation based on turnover, so they can't squirrel it away elsewhere.

 

[Brian Marwood]

What's actually needed is taxation based on turnover, so they can't squirrel it away elsewhere.

That makes no sense at all.

 

[NYboro]

That makes no sense at all.

To you - there needs to be a way to stop the big companies pretending their profits are in a low tax jurisdiction.

 

[HundredRoom]

Way to bring energy prices down is to get the Saudis and Opec t o massively increase supply. They have the capacity. We need to apply pressure on them to do so.
It wasnt so long ago that oil prices went below zero. Yes it happened.

As OP said you cant control energy prices by raising interest rates.
But all thats if you believe energy prices are stoking inflation

My view is there has been too much cheap money for too long. And pigeons - or is it chickens ? coming home to roost

 

[Jonny Ingbar]

The issue is that the energy markets aren't regulated, or at least regulated effectively.

Of course it shouldn't have been privatised in the first place (another Thatcher economic policy that failed), but save for that then the next best arrangement is the state becoming a majority shareholder, similar to France.

It cannot be right that rising costs are entirely passed onto consumers, thereby protecting (already eye-watering) profits.

It's the biggest problem of a free market economy and a conspicuous example of why the markets need proper regulation.