Bank of England poised for big rate hike to tame inflation
1 year, 10 months ago

Bank of England poised for big rate hike to tame inflation

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Economists suggest this may be the last big rate increase for Britain’s central bank, which has approved 10 consecutive hikes since a post-pandemic surge in the world economy and Russia's war in Ukraine drove inflation to 40-year highs. “We expect the MPC to raise Bank Rate to 4% in February — likely its last ‘forceful’ hike in the tightening cycle,” Sanjay Raja, Deutsche Bank’s chief U.K. economist, said in a note to clients. But “with inflation past the peak and forward looking data continuing to point to both sluggish growth and easing price pressures, the MPC could opt to slow the pace of hikes sooner rather than later.” After more than a decade of record-low interest rates, the Bank of England began raising borrowing costs in December 2021, when its key rate stood at just 0.1%. Martin Beck, chief economic adviser to economic forecasting group the EY Item Club, said that the central bank’s November forecast for a record two-year recession now looks overly “downbeat.” “The significant fall in wholesale gas prices in the last few months means inflation should fall faster and the economy shrinks by less, and for less time, than the Bank of England anticipated three months ago,” he said.

History of this topic

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5 days, 10 hours ago
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5 days, 21 hours ago
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6 days, 17 hours ago
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1 week, 3 days ago
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2 weeks, 5 days ago
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1 month ago
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1 month ago
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1 month, 2 weeks ago
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UK's central bank cuts interest rate
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Something to cheer us all with rates set be slashed on both sides of the Atlantic: ALEX BRUMMER
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Inflation set to stay above 2% for next four years, says OBR
1 month, 3 weeks ago
Interest rate cut ‘nailed on’ after UK inflation falls to three-year low
2 months, 1 week ago
Bank of England could be ‘more aggressive’ with interest rate cuts, says governor
2 months, 2 weeks ago
Inflation in Europe falls below 2% and opens the way for faster rate cuts
2 months, 3 weeks ago
Bank says interest rates could be cut ‘gradually’ after holding at 5%
3 months ago
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3 months ago
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4 months, 1 week ago
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Bank of England lowers its main interest rate by 0.25%, to 5%, its first cut in over 4 years
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4 months, 3 weeks ago
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5 months ago
Bank of England faces dilemma after potential Taylor Swift upside impact on UK inflation
5 months ago
Bank of England keeps main interest rate at 16-year high of 5.25% despite inflation fall
6 months ago
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6 months ago
Inflation drops to Bank of England’s 2% target for first time in almost three years
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