The Bank of England raised interest rates by half a percentage point to 2.25%, its highest level since 2008.

this bank of england rose this thursday 0.50 point interest rates until in England 2.25%, highest level since December 2008.

The British central bank’s monetary policy committee accelerated the rate hike. attempt to fight inflation9.9% in AugustAgainst its official target of 2%.

The rise in the price of money in the United Kingdom comes after the United States increased interest rates in that country by 75 basis points this Wednesday.

On your own behalf The European Central Bank (ECB) also increased it to 1.25% on September 8.The largest increase in its 24-year history.

The Bank of England committee also voted unanimously in favor of r.reduce the portfolio of government bonds purchased in the quantitative easing programIt was introduced during the 2009 financial crisis.

Thus, it plans to reduce it by £80,000m (€91,500m at today’s exchange rate) to £758,000m (€870,000m) in the next twelve months.

The entity estimates that national gross domestic product (GDP) may have contracted by 0.1% between July and September.In addition to the 0.1% contraction between April and June, it means the UK is already in a recession.

Moreover Changed its inflation forecast, which was now 11% in October, compared to 13% from the previous forecastConsidering that the government’s plans to contain energy prices will contribute to contain the consumer price index (CPI).

Regarding rates, five members of the monetary policy committee voted to increase the rate by 0.5 percentage points, three advocated a 0.75 percentage point increase, and one would have preferred a 0.25 percentage point increase, the business explains.

The committee warns that at its meeting in November, Prime Minister Liz Truss will analyze the impact of the Conservative government’s new “growth” plan, which will be presented this Friday, on its economic forecasts and its possible impact on rates.

The executive stated prepares potentially inflationary measures that increase public debtsuch as corporate tax cuts and the abolition of the upper limit on bankers’ bonuses, in addition to guaranteed loans to energy distributors to limit bill escalation.

The Bank of England also closely monitors the developments in the pound, which has depreciated sharply against the dollar due to fears about the state of the British finances.

Source: Informacion

Popular

More from author

A man fell into a coma after a fight in a cafe in the Krasnoyarsk Territory 14:55

A resident of the Krasnoyarsk Territory was hospitalized after a fight near a cafe. This was reported by "Channel 7 Krasnoyarsk". Relatives of the...

The Russian army defeated two brigades of the Armed Forces of Ukraine in one of the directions 14:54

Over the past 24 hours, Russian military personnel defeated two brigades of the Armed Forces of Ukraine (AFU) in the Kherson direction; enemy...

Lazarev urged not to compete in helping Crocus victims 14:44

Singer Sergei Lazarev called for no competition to help victims of terrorist attacks in the Crocus City Hall concert hall. This was reported...

The doctor revealed the real danger to the health of office workers 14:23

Sitting in the same place for a long time can cause depression and weakened muscles. Adaptive physical education coach and rehabilitation specialist Sofia...