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Higher and that inflict more pain on households and businesses. to what extent do you think it is inevitable interest rates will increase further because of this increase in inflation, and perhapsjust explain for our viewers the link between those two. the link is that the economy is running pretty hot, the labour market is running pretty hot, we can see supply shortages in many parts of the economy, so what the bank of england is doing is seeing the high inflation and saying we have to put up interest rates to take money out of the economy. what is important as the chancellor isn t doing too much to work against them because of the temptation which is clearly to say we need to do more to support households and businesses through this difficult time. the ultimate cause of much of this is essentially the price of energy which we import as a country has gone up a lot making the country poorer and it s the adjustment to being a bit poorer than what we wished we were going to be which is g
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