Eli5, why are interest rates raised slowly every month rather than in one bigger chunk when inflation is so high?

Question

Every month the BofE raises the interest rate bit by bit, knowing inflation is so high and knowing they had to raise the rates quite high, why do it so slowly?

In: 35

Answer 1

Would you rather walk down the stairs or be pushed out of the upstairs window?

Doing it gradually gives everyone time to plan & adjust, they give a lot of signals and other guidance on where they think it’s going to go which gives everyone the time to sort things out.