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The Monetary Policy Committee voted by a majority of six to three in its June meeting to raise the interest rate for the fifth time in a row from one percent to 1.25 percent. The rate had been at its lowest ever level of 0.1 percent throughout the coronavirus pandemic before the MPC began raising it in response to skyrocketing inflation in December 2021.
Inflation currently sits at around nine percent and is expected to exceed ten percent before the end of 2022, well above the two percent target set by the BoE.
The bank is expected to raise the rate by half a percentage point to 1.75 percent, but some economists have pointed out that a lesser rise could be on the cards to flush away recession risks.
Liz Martins, senior economist at HSBC Bank Plc in London, said: “The inflation picture has materially worsened, and the messaging from the governor – 50 basis points is on the table – suggests to us that they are ready to get forceful.”
A new interest rate is due to be announced by the Governor at 12.30pm today.
Good morning from London. I’m Aliss Higham, I’ll be bringing you all the latest developments on the interest rates announcement today. Please feel free to get in touch with me as I work if you have a story or tips to share! Your thoughts are always welcome.
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