Bank of England Rate Hikes Combat Inflation But Squeeze Households

Inflation remains high in the UK, driven more by rising costs than excess demand, so interest rate hikes haven't helped much.

The Bank of England has raised rates partly to protect the pound, as other central banks have done the same.

Rate hikes have not caused a recession yet but are hurting many people financially.

Cutting rates in coordination with other central banks could help avoid damage to the pound.

Further conflicts in the Middle East could drive oil prices and inflation higher again.