Commentary

Expect the unexpected in the Bank of England’s battle with inflation

While the UK might not have to raise rates as high as the Fed, external factors are out of its control

Threadneedle Street is walking a tightrope to tame price rises
Threadneedle Street is walking a tightrope to tame price rises Photo: Vuk Valcic/Getty Images

Niloofar Rafiei is a global macroeconomist at Sarasin & Partners 

In the depths of lockdown, few imagined UK inflation would surge to a 40-year high of 9.1%, or that interest rates could rise so swiftly from their pandemic emergency levels of 0.1% to 1.25% today.

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