This is another increase of 25 basis points, from 1% to 1.25%.
London Thanasis Gavos
The Bank of England announced the fifth increase of its key interest rate since last December at noon.
This is another increase of 25 basis points, from 1% to 1.25%.
This is the first time since January 2009 that the rate of the British central bank has risen above 1%.
The central monetary policy committee also warned that it expects inflation to exceed 11% this year, up from 9% last month.
The committee also announced “emphatic action” if deemed necessary to prevent high inflation from becoming a persistent phenomenon.
He changed the guidelines regarding the possible future development of interest rates in the next meetings, saying that “the scale, pace and timing of further increases will reflect the changing economic outlook” and that he will be “especially vigilant about more persistent inflationary pressures “. Until now, the reasoning of the decisions stated that “some degree of further tightening (of monetary policy) may be appropriate in the coming months.”
Three of the nine members of the committee were in favor of a higher interest rate increase, ie to 1.50%.
