Eli5: How do further BoE interest rate rises help contain inflation?

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So I keep hearing the party line about how it is necessary to increase interest rates in order to contain rising inflation. I just don’t understand it as an explanation? I see that it is an advantage for people with savings and fiscal assets, and in increased liability for anyone with consumer credit debt or a mortgage. Can anyone explain how it helps to curb inflation?

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Anonymous 0 Comments

Oh ok thanks this makes more sense now!

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