Inflation, Inflation, Inflation. Isn't that supposed to be the BOE main objective? With inflation already way above the Government target, lowering interest rates will increase it even further.

The result is, you are better off for a month or two. 6 months down the line, the cost of food and other every day essentials has surpassed the gains you made from the interest rate cut.

In turn, this will lead to more strikes. If inflation goes even higher, wages have to rise. Companies can't afford to raise wages, especially in the current financial "crisis". Companies can't afford it, people can't afford it, financial crisis keeps going on.