Thursday, 17 March 2011

Will higher interest rates reduce inflation?

There has been much speculation about when the Bank of England may increase interest rates. With CPI inflation at 4% and RPI inflation at 5.1% (highest since 1991), many feel the Bank need to act to reduce inflation and maintain low inflation expectations.
http://econ.economicshelp.org/2011/02/will-higher-interest-rates-reduce.html