Rampant inflation and a looming recession mean the Bank of England has few good options at its disposal

Ultimately, the Bank has one main tool, raising interest rates. The current situation shows how ineffective a weapon it can sometimes be, writes Ben Chapman

‘The problem for the Bank is that it only really has one lever it can pull’ (Reuters)

The Bank of England has a thankless task at present. Whatever it chooses to do with interest rates it will be criticised.

Its main job is to tame inflation and slow down the surge in prices of essential goods that is causing real pain for people across the country.

The problem for the Bank is that it only really has one lever it can pull – raising interest rates – and that is likely to cause more economic pain, just as the UK teeters on the brink of a recession. However, doing nothing could be worse. There are few good options.