The Bank of England raises interest rates

In the statement issued by the Bank of England (BoE), it was reported that the monetary policy rate was increased by 50 basis points from 3 percent to 3.5 percent. BoE had increased the policy rate by 75 points in its last decision. Thus, the bank slowed down the rise in rates.

Central banks continue to raise policy rates after the US Federal Reserve (Fed). After the central banks of Switzerland and Norway, the BoE raised interest rates today.

INFLATION DECREASED LIMITED

In the inflation data announced yesterday, the increase in consumer prices was seen to have eased slightly in November.

Consumer inflation (CPI) slowed in the country in November, according to data from the UK’s Office for National Statistics, with the country’s annual inflation rate falling to 10.7 percent, falling from a high of 41 years. Economists’ November inflation expectation was 10.9 percent.

‘WE DO NOT HESITATE TO RESPOND TO INFLATION’

In the announcement, it was indicated that the problems related to the global supply chain were eased, but the inflationary pressure remained upwards.

“Our bank’s experts began to forecast that the Gross Domestic Product (GDP) will contract by 0.1 percent in the last quarter of this year. The markets remain tight despite the fact that the demand in the labor market begins to diminish. While inflation was slightly below expectations at 10.7 percent in November, the Energy Price Guarantee (EPG) had a positive impact on household energy bills.

In the announcement, it was stated that if the economy develops according to the bank’s November projections, interest rate increases may continue, “There are many uncertainties regarding the outlook. If the outlook faces persistent inflationary pressure, we will not hesitate to respond forcefully.” expressions were used.