Britain’s central bank, the Bank of England (BoE), raised its key interest rate by 50 basis points on Thursday, as expected. It now stands at 4 percent, the highest level since 2008.
This is the tenth rate increase in the United Kingdom since the end of 2021. The goal is to curb skyrocketing inflation. Inflation in the UK is still above 10 percent. The Bank of England does not rule out further rate hikes.
The Central Bank also believes that at the beginning of this year, the British economy entered a five-quarter recession. The recession will be less deep than previously thought, with the Bank of England projecting the economy to contract by 0.5% in 2023 and 0.25% in 2024, down from 1.5% and 1% respectively in November.
On Wednesday, the US central bank already raised the key interest rate there by 25 basis points. The European Central Bank (ECB) will announce an interest rate decision on Thursday afternoon. Analysts expect growth of 50 basis points.
Source : HLN