business has picked up again truss budget and so forth. higher interest rates are really taking their toll on the economy now, companies are reporting falling demand and activity, so expect a contraction in this quarter. is demand and activity, so expect a contraction in this quarter. is this the rice contraction in this quarter. is this the price we contraction in this quarter. is this the price we pay contraction in this quarter. is this the price we pay for contraction in this quarter. is this the price we pay for trying - contraction in this quarter. is this the price we pay for trying to - contraction in this quarter. is this | the price we pay for trying to keep a lid on inflation? a lid on inflation? precisely, the whole point a lid on inflation? precisely, the whole point of a lid on inflation? precisely, the whole point of raising a lid on inflation? precisely, the whole point of raising interest i whole point of raising interest rates is to dampen demand. we ha
so business has picked up again but it now looks like the weight of the cost of living and higher interest rates are really taking their toll on the economy now. companies are reporting falling demand, falling activity, so expect a contraction in this quarter. yes, and is this the price that we pay for trying to keep a lid on inflation? well, precisely. the whole point of raising interest rates is to dampen demand. it seems to have taken a while. we had a tail wind, if you like, from the pandemic whereby travel, tourism had been constrained, so a new lease of life was seen in the spring across europe in particular. but it looks like that is now starting to fade. we ve had ourfun in the sun, as it were, and we re now seeing the increased costs come through on our bank accounts, increased mortgage rates, as well as the general increased cost of living. and that s just hitting demand now and causing a lot of retrenchment from consumers and that s hitting businesses, who are then likewis