Britain’s interest rate is now 0.25%
This is one of those things that is not absolutely true but is illustratively true. The Bank of Engald’s interest rate is currently 0.25%.
The policy relevant inflation rate is probably Core CPIH: 3.5%.
The real interest rate is therefore 0.25%.
Obviously, nominal interest rates are that 3.75%. But the real interest rate is also of interest (aha, aha).
Yes, we can get much more complex than this, we can talk about expected inflation - probably a greater driver of market rates than current - and so on.
But Britain does not currently have high interest rates. Britain has a high inflation rate and therefore low real interest rates. A useful little thing to keep in mind.
Tim Worstall