The ‘meets expectations’ is the key here. The BofE feels obliged, as it’s their ‘job’ to keep inflation under control, to keep pushing up interest rates until it is. Removing your leg will eventually sort out your dodgy knee. Carpet bombing will eventually win a war. And making companies with borrowings have to lay off staff who can’t buy stuff anyway because their mortgage and rent have become so expensive, means in theory prices have to come down otherwise no one can sell anything. But at what cost. The next election, most likely. There has, surely, to be a better way.
“Cut interest rates to prevent recession, says Institute of Economic Affairs’ SMPC”
The ‘lag’, ‘trailing leg’ or ‘long wake’ of any economic measure means that its effects are often felt long after the problem it was supposed to solve has disappeared. 2010’s ‘balancing the books within the space of one parliament’ (that went well, didn’t it?), austerity to you and me, is one example.