Why doesn’t raising interest rates at the Bank of England limit commercial bank lending [i.e. money creation] and inflation?

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Chapter 3 of Modernising Money covers the problems with using interest rates to try to manage bank lending (and money creation). However, empirically it is clear that interest rates do not effectively influence bank lending and money creation. Raising rates before the crisis (and in the 1980s) did not slow down the rate of bank lending, and lowering interest rates to 0.5% after the crisis did not encourage banks to increase lending. Interest rates are the wrong tool to manage money creation.

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