Bank of England interest rate: With today’s hike, the Bank of England has raised interest rates for the 13th time in a row. A day earlier, inflation data came in higher than expected.
Read More: ‘Banging Sounds’ Heard During Search For Missing Tourist Submarine, Rescuers Race Against Time
Bank of England interest rate: In line with expectations, the Bank of England (BoE) raised interest rates on Thursday (June 22, 2023). The central bank hiked rates by 50 basis points (bps) to 5 per cent from 4.5 per cent earlier. With today’s hike, the Bank of England has raised interest rates for the 13th time in a row. A day earlier, inflation data came in higher than expected.
Read More: Pakistan Holi Celebration Ban: 10 BIG Points On DRACONIAN Order Against Hindus
Economists polled by Reuters last week were unanimous that the BoE would raise rates to 4.75 per cent, their highest since 2008, from 4.5 per cent. But after inflation held at 8.7 per cent in May, investors were pricing a 45 per cent chance that the BoE would opt for a bigger move and raise rates by half a percentage point, even as fears mount about the hit to mortgage holders and the risk of a recession, Reuters said in a report.
Read More: US to Ease H-1B Visa Rules for Skilled Indian Workers as PM Modi Visits. Check Details
Britain’s economy, which has been hit by the shock of Brexit as well as the COVID-19 pandemic and the surge in gas prices caused by Russia’s invasion of Ukraine, has dodged a widely expected recession so far in 2023, though growth looks set to be a minimal 0.25 per cent this year, according to the BoE’s forecasts. Unlike most other big, rich economies, output has barely recovered to pre-pandemic levels. However, two inflation readings since the BoE’s last rate hike in May have both been higher than expected, the Reuters report added.
With inputs from Reuters
