Why is the Bank of England considering an interest rate rise?
Inflation could be about to run out of control, spurring workers to demand higher wages to protect their living standards. A self-perpetuating spiral of higher wages leading to higher inflation is the fear that stalks all central banks. There is also a growing sense among some policymakers that the pandemic emergency is over, and so the emergency cut in interest rates from 0.75% in March 2020 should be reversed.
The central bank’s monetary policy committee (MPC) has the task of keeping inflation at 2% over the medium term, which means the next two to three years. It can ride out a short burst of inflation, but more persistent price rises need to be tackled. The economy is almost back to the size it was before the pandemic and most businesses
Read more on theguardian.com
