I don’t understand why central banks seem to use such a blunt object like interest rates for every inflation problem. It would make sense to rise if the cause of inflation was accelerated economic activity, not price rises due to supply restrictions. How does hurting mortgage holders even more help with not starting wars? All it can do is have a double dampening effect on the economy as people pull back their discretionary spending.
Using interest rates for this kind of inflation is guaranteed to cause a recession.
Using interest rates for this kind of inflation is guaranteed to cause a recession.