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

I think the much more interesting question would be why interest rates are raised in the first place, given the fact that the evidence for interest rate hikes curing inflation is quite thin and even central bankers themselves admitting that it doesn’t actually work that well.