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

Because they don’t know what the “correct” level to raise to is exactly and overdoing it is much worse than being a little late. So they raise bit by bit and look at how the economy reacts until they get the desired result.