The Bank of England raised its key rate for the twelfth time in a row
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The Bank of England raised interest rates by a quarter of a point to 4.5%, as it predicts that inflation will remain higher than previously expected and the economy will work harder. This was reported by the bank’s press service.
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The Bank of England’s Monetary Policy Committee voted overwhelmingly for the 12th consecutive increase in borrowing costs, continuing the most aggressive cycle of rate hikes since the 1980s in an attempt to contain inflation in Great Britain, which remains ambiguous.
Interest rates in Great Britain are at their highest level since October 2008, when the world economy was under the pressure of the financial crisis.
Inflation
Inflation is expected to remain higher than previously forecast. Inflation in Britain has remained high in recent months — according to the latest official data, it amounted to 10.1% in March. This is the highest indicator in the G7 group of developed economies and is significantly higher than the Bank of England’s official inflation target of 2%.
Currently, the Central Bank expects that inflation at the end of the year will be higher than 5% compared to the 4% that it predicted in February. This is due to high food prices, which are growing at the fastest annual rate since 1977, and a stable labor market.
“Let me be frank, inflation remains too high. We must stick to the course to ensure that inflation will decrease to the target level of 2%,” said the head of the Bank of England, Andrew Bailey, at a press conference after the decision was made, The Guardian writes.
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News editor Roman Myronchuk writes on the following topics: Economy, finance, banks, cryptocurrencies, investments, technologies
Source: Ministry of Finance
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