Sleepwalking into a crisis
The Why? CurveAugust 18, 2022
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Sleepwalking into a crisis

UK inflation is now in double digits. We got there faster than expected and the Bank of England is likely to keep raising interest rates because they believe that’s the only way to contain prices. Not long ago the same bankers were arguing that there was no need for a change in their monetary policy because the problem was a transitory lack of supply. That’s still the case, of course, so why do they think hiking rates will make much difference now? This week Phil and Roger talk through the build-up to Britain’s cost of living crisis, and ask why is so much reliance being placed on the Bank of England to fix the problem. 

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