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Podcast: Beyond Currency
Episode: 28 April 2023 - Interest rates starting to bite
Description: The Bank of England has been raising short-term interest rates for close to eighteen months in an effort to slow demand and by doing that lower inflation.
It is only now that the base rate has reached a level that is restrictive on economic activity having been accommodative for many years. It is impossible to know without doubt when interest rates become restrictive, since it is as much about attitude as any economic data.
The Bank’s intention when it began its current programme of hikes in December 2021, was for rates to become neutral, where they are neither restrictive nor ac...