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Britain's Economic Freefall

Ones and Tooze

CHAPTER

Is the Central Bank Going to Increase Interest Rates?

With investors losing faith in the pound, it seems like the central bank is either forced into accepting higher inflaion on one hand, or raising interest rates. Bank of england has an unchanged manditeit, which is trice ability. Its taget is notionally two % inflation, and britain is closer to ten % right now. So it's going to pursue lower inflation. And that problem is made worse by the falling pound, because of the higher import prices. But the bank of england doesn't specifically target the pound, so the pound can just droop to wherever it needs to droop to. And then they will offset that by raising interest Rates. That

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