RE: Interest rates21 Oct 2022 16:07
Ultimately, if the BoE keeps increasing interest rates then it will bring down inflation......by causing a massive recession. It's the monetary equivalent of using a sledgehammer to crack a nut. Mortgage costs, job losses, house price falls, increased poverty etc will be the collateral damage suffered by millions from this crazy policy.
As mentioned above, this bout of inflation is being caused by supply issues and NOT excessive demand that needs dampening. There must be other ways to handle it. Of course, if Putin snuffes it tomorrow, the escape route would be a bit more straightforward.