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HomeLatest NewsBank of England raises rates by half a point despite UK recession

Bank of England raises rates by half a point despite UK recession

Date: March 29, 2024 Time: 15:05:42

The Monetary Policy Committee (MPC) of the Bank of England has decided to raise interest rates for the pound area from 3.5% to 4%. At its meeting, the council chaired by Andrew Bailey voted by a 7-2 majority to raise the bank rate by 0.5 percentage points, or 50 basis points.

Two members of the central bank voted to maintain rates in a context in which the UK economy has been officially in recession since last summer. Instead, its inflation remains out of control with second-round effects on the CPI and political instability in London has also caused reputational damage to investors who buy its.

“Global consumer price inflation remains high, although it is likely to have peaked in many advanced economies, including the UK. Wholesale gas prices have recently fallen and supply chain disruption The global economy seems to be easing amid a slowdown in demand World banks Many central banks have continued to support monetary policy, although market prices indicate rate cuts ahead,” it said in its statement.

According to the Bank of England, UK domestic inflationary pressures have been stronger than expected. “Both the growth of regular salaries in the private sector and the inflation of the CPI in services have been higher than expected in the November Monetary Policy Report. The labor market remains tight by historical standards, although it has begun to relax and some Indicators on wage growth have moderated, along with a gradual decline in underlying output.”

The Bank of England notes that paying full attention to near-term data developments will be crucial in assessing how quickly and to what extent domestic and external inflationary pressures will ease. The latest report shows “a sharp drop in CPI inflation from its current level of 10.5% in December” and expects the drop to around 4% by the end of this year.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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