UK Economy - Do Higher Interest Rates Control Inflation?
- AS, A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 25 Apr 2023
This revision video looks at the recent increases in UK interest rates and their impact on the UK economy. The Bank of England has raised policy interest rates from 0.1% to 4.25% and they may move higher still. But do higher interest rates actually do much to help bring inflation down? What are the risks for the UK of a period of more expensive credit for households and businesses?