Bank of England (BOE) In its fight against inflation, the U.S. has decided to raise its official interest rate from 1.75% to 2.25% this Thursday, five times its price stability objective. Notably, the UK CPI was up 9.9% in August against the BoE’s target of 2%. The central bank delayed its meeting by a week due to the death of Queen Elizabeth II.
As stated by the Monetary Authority in its statement, five members voted to raise the bank rate by 0.5 percentage points, Three members prefer 0.75 point increase in bank rate percentage points, and one member voted for 0.25 points.
committee also Voted unanimously to reduce UK government bond balances purchased with central bank reserves 80 billion pounds. Feather for the sweet months, up to 758,000 million,
In the Monetary Policy Report of August, the institution headed by Andrew Bailey stated that the risk their estimates of external and internal factors were extraordinarily large aroundGiven the steep rise in bulk gas prices since May and the consequent impact UK real household income and CPI,
since August, Bulk gas prices have been very volatile And there have been major moves in financial markets, including a sharp rise in government bond yields globally. The British pound has depreciated significantly during this period.
“Even then, Uncertainty over the outlook for UK retail energy prices has eased, Following government announcements of support measures including energy price guarantees,” the BoE says.