The U.K. Should Let Inflation Rip for a Bit

The Bank of England is trapped in a policy box of its own making, having dithered and delayed on whether and when to withdraw pandemic stimulus. Although inflation is now roaring away, it shouldn't try to make up for lost time.

Fiscal tightening on the way reduces the urgency for a monetary squeeze. And while a modest rise in borrowing costs to prevent inflation expectations from becoming unmoored is justifiable, the guardians of U.K. economic stability need to be wary of throttling the economy by moving too aggressively to address price pressures that are largely outside of their control.