Bank of England's Interest Rate Move Puts Economy on Collision Course

The Bank of England has kept interest rates at 3.75%, but three members of its Monetary Policy Committee wanted an immediate increase.

This move comes as inflation is rising again, and the threat of higher interest rates is very real. However, raising interest rates might not be the best solution to tackle the current inflation problem.

The issue is that much of this inflation is being driven by disrupted energy supplies, food pressures, and geopolitical instability - supply-side problems that cannot be solved by higher interest rates.