A global recession is on the horizon - please read OP for mod warning

This is exactly it. I am deeply skeptical that monetary policy is causing the greater proportion of the inflation.

The confluence of events fouling up the globalised supply chain pretty much for the first time in the globalised era across so many sectors is an event we haven't yet dealt with.

Being able to pull the lever of interest rates is great and all, but only if it has the intended effect.

Developing economies with weak currencies and febrile social systems are going to have a very rough time if interest rates are jacked up too suddenly too quickly. That's to no one's benefit.

I agree

but interest rates need to be 3% and politics is stopping it from happening.

people on tracker and variable rate mortgages are obviously very upset with this hike and it will affect them deeply but it needs to happen for the good of the economy long term

inflation needs to kept low and under control and if that means high internet rates long term than that’s the price we must pay

Yes there's such thing as a self fulfilling prophecy when it comes to recessions.

But you could also just have the situation where peoples disposable income they'd be spending in places is now being spent on things like fuel or oil and that bit of spending reduces demand too, before people start tightening their belts at all.

Japan is a bit of a unique case. It's debt it is overwhelmingly internally held, it is coordinated with the central bank and governemnt by large Japanese institutional investors who themselves are hold extremely large amounts of foreign debt.

In turn Japan is the world's largest creditor, with trillions on the go at any given time, but it is generally extremely safe debt they own like long term US Treasury bills.

Japan adding to its debt pile makes the Japanese economy more sluggish in the long term, but it's all debt they can easily service.

What exactly is happening here?

Japanese bank is printing money which is then used to lend to the government via bonds?

The opposite. Japanese gov. bonds purchases are typically coordinated with very large financial institutions (Nomura etc). Japanese institutions are gigantic creditors to the global economy via both investments and extremely low risk sovereign debt purchases. The Japanese economy is a gigantic debt car wash, but it's very low risk debt.