The Bank of England hiked interest rates by 50 basis points, its largest single increase since 1995, and projected the U.K.'s longest recession since the global financial crisis.
In a news conference following the announcement, Bank of England Governor Andrew Bailey said the shock of"There is an economic cost to the war, but I have to be clear, it will not deflect us from setting monetary policy to bring inflation back to the 2% target," he added.U.K. inflation hit a new 40-year high of 9.4% in June
Analysts had been keen to assess the bank's language, particularly its previous commitment to act"forcefully" on inflation, and the MPC retained that language in Thursday's report. The bank said that it intends to start active government bond sales worth approximately £10 billion per quarter from September, subject to a final green light from policymakers.The bank issued a dire outlook for economic growth, suggesting that the latest gas price rise has led to another"significant deterioration" in the outlook for activity in the U.K. and the rest of Europe.
The forecast warns of a peak-to-trough fall in output of 2.1%, with the economy beginning to shrink in the fourth quarter of 2022 and contracting throughout 2023.
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Recession: Was the Bank of England right to raise interest rates?The Bank of England warns the UK will fall into recession as it raises interest rates from 1.25% to 1.75%.
Lire la suite »
Bank of England warns the UK will fall into recession this yearAs the Bank of England forecasts a five-quarter contraction in the UK economy - starting in Q4 of 2022 Our Economics Editor BenChu_ has Newsnight's Global Tracker to assess how the UK position compares to other countries👇
Lire la suite »
Bank of England doubles down on inflation gamble to prevent greater damage aheadSky's Paul Kelso speaks to the governor for an explanation as the Bank inflicts more pain on millions of borrowers to help control a price problem that is largely outside its control.
Lire la suite »