Raising interest rate is like pushing the brakes, but Bank of England may regret it

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Raising interest rate is like pushing the brakes, but Bank of England may regret it
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What a strange world we're living with where increasing interest rates could be construed as not being tough enough on inflation, writes Sky's Ed Conway

Inflation often tends to pick up when the economy is racing and drops when it's slowing, so all else equal a rise in interest rates should reduce economic growth and also inflation.

There's a chance it may live to regret all these rises and be forced, next year or the year after, to cut them again.But overarching everything else is another concern. That's a worrying pattern, underlining the fact that the Bank is behind the curve, and has yet to catch up with rising prices.

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