The Bank of England raised the interest rate to 4%
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At its first meeting in 2023, the Bank of England raised the base interest rate by 50 basis points to 4% from 3.5% per annum, as expected by most analysts.
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The rate was raised at the end of the tenth meeting in a row and reached the maximum value since 2008.
For a rate increase of 50 bp. seven out of nine members of the Monetary Policy Committee (MPC) voted, while two members of the MPC (Swati Dingra and Silvana Tenreiro) voted to keep the interest rate at 3.5% per annum.
In December, the Bank of England also raised its interest rate by 50 basis points, and in November – by 75 basis points.
The regulator also lowered the forecast for inflation in the country at the end of the first quarter of 2023 to 9.7% from the previously expected 10.1% and improved the forecast for the decline in UK GDP at the end of the first quarter of 2023 to 0.3% from 0.6%.
As Reuters writes, the Bank of England previously stated that “if necessary, it will react decisively” to signs of further inflationary pressure, and “a further increase in the bank rate may be required.”
The Bank of England forecasts that inflation will fall below its target of 2% in the second quarter of 2024, but it warns of upside risks to this forecast due to continued labor market pressures and higher-than-expected core and domestically driven inflation .
Immediately before the announcement on Thursday, investors were mostly of the opinion that the bank rate will reach a maximum of 4.5% in the middle of the year, although there is a possibility that it will stop at the level of 4.25% earlier, since the UK economy this year is likely to lags behind others. rich countries
Author: 
News feed editor Anna Nedogybchenko. She writes on the following topics: Finance, banks, economy, investments
- Inflation
- Accounting rate
- Economy
Source: Ministry of Finance
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