Although inflation can be expected to increase due to the Iran War, and whilst the UK economy is showing signs of consistent growth following the latest July GDP release, it strikes me as economically illiterate to increase interest rates at this point in time. Particularly, when an increase in inflation will result from the availability of resources from an economic shock, not from an overheating economy. Would an increase in rates choke off nascent growth?

    Despite the Iran War importing inflation to the UK, why is the BoE thinking of rate rises?
    byu/Gungemuncher inAskEconomics



    Posted by Gungemuncher

    Leave A Reply