Bank of England hikes interest rates to 13-year high, with inflation set to hit 11%
Business InsiderJUL 2022
Bank of England Raises Interest Rates for Fifth Time, UK Inflation to Reach 11%
Image copyright: Bloomberg/Getty Images [via CNN]
The Spin
Narrative A
The Bank of England is acting too modestly after it successively failed to foresee inflation rises. This is a new era of instability that demands more aggressive action to deter borrowing and strengthen the UK economy.
Narrative B
Today's central bankers don't have a choice, they have to raise interest rates gingerly to tackle inflation without wrecking economic growth. Although they are doing a thankless task, they will eventually be lauded for making the difficult but right decision that risks dampening the UK economy to protect long term stability.
Metaculus Prediction
There is a 50% chance that the benchmark interest rate in the US will be at least 2.78% on Dec. 31, 2023, according to the Metaculus prediction community.
