On the 4th of August 2022 the Bank of England hiked interest rates by 50 basis points, its largest single increase since 1995, and projected the UK’s longest recession since the global financial crisis. The first question is, why would the Bank of England – or any other central bank for that matter – matter – increase the cost of borrowing while predicting a contraction of the national economy? The second question revolves around the impact of interest rates on the economy…