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UK Economy - Do Higher Interest Rates Control Inflation?

Level:
A-Level, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 25 Apr 2023

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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?

UK Economy - Do Higher Interest Rates Control Inflation?
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