Question:
Why didn’t the Bank of England raise Interest Rates when Inflation was over their Target?
Author: eric_galvaoAnswer:
-Monetary Policy aims for Price Stability. But from 2010-2012, Inflation was still High, and yet QE Kept going -This can be Explained how Britain entered a Economic Shock, and Concerns of entering a ‘Second Dip Recession’ -BoE said its not Needed as Inflation would fall Naturally. Raising % Rates would make it more likely of Another Recession
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