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Silvana Tenreyro talks about some of the trade-offs the Bank of England has to make when deciding whether to change interest rates. She explains that at the moment, inflation is higher than we would like it to be, because the price of things like energy and things we import are very high. But because people's willingness to pay for goods and services is a bit weaker now, raising interest rates too much would harm the economy. She explains that deciding between these trade-offs has led her to vote for a gradual rise in interest rates.
