Advertisements
Business

Bank of England: Highest interest rate hiked in 27 years amid recession worries

Bank of England
Written by bobby
Advertisements

Bank of England: Highest interest rate hiked in 27 years amid recession worries: The Bank of England on Thursday made the biggest hike in interest rates in 27 years. In order to control the rising inflation amid fears of a recession in the country, the bank has increased the interest rate. The rate of inflation in England is 13 percent.

Bank of England: Highest interest rate hike in 27 years

Russia’s attack on Ukraine worsens the situation

The Bank of England’s Monetary Policy Committee has decided to increase the bank rate to 1.75%, after recovering from a rise in energy prices caused by Russia’s invasion of Ukraine. A 50-basis-point increase was expected by most economists in a Reuters poll as central banks around the world attempt to contain a rise in prices.

the bank warned

The Bank of England warned that Britain was facing a recession with a peak-to-trough fall in output of 2.1%, similar to the recession in the 1990s, but due to the hit from COVID-19 and the 2008-09 global recession. The reason was very little. Financial crisis. The economy will begin to shrink in the last quarter of 2022 and contract throughout 2023, making it the longest recession since the global financial crisis.

market is down

This would leave families facing two consecutive years of decline in their disposable income, the biggest squeeze since these records began in 1964. British consumer price inflation rose to a 40-year high of 9.4% in June, already four times the BoE’s 2% target, spurring industrial action and spurring whoever sees Boris Johnson as Britain’s next prime minister. Pushing to come with further support as minister.

Rates have been increased 6 times

England’s central bank previously expected inflation to be above 11% and that the UK economy would see almost no growth before 2025. The British central bank has raised rates six times since December but Thursday’s move was the biggest since 1995. The economy will begin to shrink in the last quarter of 2022 and contract throughout 2023, making it the longest recession since the global financial crisis. Will become

At the start of the recession, consumer price inflation was now likely to peak at 13.3% in October – the highest since 1980 – due to a rise in energy prices following Russia’s invasion of Ukraine.

About the author

bobby

Hi, I am Bobby. Blogger India. I love writing, and reading articles. Blogging is my passion. I have started my blogging career in 2016.

Leave a Comment