Why does a floating exchange rate help the Bank of England combat inflation when it reduces the money supply?

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When the money supply decreases, interest rates rise, causing UK export prices to increase and import prices to decrease.Reducing the money supply leads to higher interest rates, which lowers UK export prices and raises import prices.A reduction in the money supply raises interest rates, resulting in a decline in the prices of both UK exports and imports.Decreasing the money supply causes interest rates to increase, pushing up the prices of UK exports and imports alike.

Explanation

When the Bank of England lowers the money supply, interest rates increase. Under a floating exchange rate, this tends to reduce the prices of both UK exports and imports, which supports efforts to reduce inflation.