Soldato
The thought is that a 5% base rate will bring inflation down to match. This lowers cost pressures. Like always, it's those who over-extended themselves by buying houses with ultra cheap mortgages who are most at risk once the cycle changes.
i think that's over optimistic. The main rises are coming from things like petrol and gas / electric. Increasing interest rates won't really curb rises there as people still have to pay for energy regardless of what the price is. COnsidering that prices are going up again in October and probably will go up another 6 months later I am not sure increasing interest rates alone is going to fix the problem we are seeing.