Well, there is something in that. We have had a pretty charmed life over the last decade when it comes to interest rates.
But.
I don't see how raising them like this will reduce inflation. I'm sure I've said this before. I definitely have, but on hear I mean.
The idea is that higher interest rates makes people more likely to save and less likely to borrow money. And it means people are spending more on stuff like mortgages, so have less spare money. That lowers demand which lowers prices. Right? So inflation goes down.
But. Inflation right now is being driven by things like the Ukraine situation and increasing fuel and food prices. People aren't spending all their spare money on yachts, they're struggling to heat their homes and feed their kids.
Raising inflation isn't going to control that, it's just going to give people who are already struggling another kick in the nuts.
I speak as someone who officially doesn't know what they're talking about, having got a D in Economics
So if someone could explain what I've got wrong.