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.