Sterling Is Giving and the Bank of England Meeting Could Be Held This Week

When sterling falls, all imported prices go up straightaway in the united kingdom. That then means at the forward inflation rate, the one that you expect to happen in a year or two, goes up. And if that's going up, then your interest rates have to go up to cover that. It's a very simple it's a trilemma, what we call in macro economics,. You can control 2 of them, but not 3. So something hls to give. The uk. Has had very low interest rates for a long, long time. A huge amount of the british population is remortgaged. There could even be an emergency bank of england