Bank Of England Hikes Interest Rate Tenth Time In Row
Umer Jamshaid Published February 02, 2023 | 07:27 PM
The Bank of England on Thursday hiked its interest rate for a tenth time in a row as global authorities race to combat sky-high inflation
London, (UrduPoint / Pakistan Point News - 2nd Feb, 2023 ):The Bank of England on Thursday hiked its interest rate for a tenth time in a row as global authorities race to combat sky-high inflation.
It also forecast a shallower-than-expected UK recession this year.
The BoE voted at a regular meeting to lift its key interest rate by a half-point to 4.0 percent, the highest level since late 2008.
The hike was double the lift announced by the US Federal Reserve on Wednesday, while the European Central Bank will unveil its latest rate decision at 1315 GMT.
BoE policymakers voted 7-2 in favour of the rate increase, with a minority calling for no change, according to minutes from the gathering.
The BoE predicted that this year's UK economic downturn would be milder than it previously forecast, noting that inflation was "likely" to have peaked in many advanced economies.
UK inflation, which sits close to a 40-year peak, was expected to continue to decline "gradually" in the first half of 2023 as energy prices retreat, the minutes added.
Central banks are seeking to cool high energy and prices, fuelled by Russia's invasion of Ukraine one year ago.
Thursday's announcement will likely worsen Britain's cost-of-living crisis because commercial lenders will now ramp up their own interest rates on credit cards, mortgages and other loans.
That will further squeeze cash-strapped Britons who are buckling under rampant consumer prices alongside rising household bills and transport costs.
Britain was gripped by strikes this week as public and private sector workers protest over pay that has failed to keep pace with inflation.
UK inflation slowed to 10.5 percent in December, but this is more than five times the BoE's official target level of two percent.
The BoE began to tighten monetary policy in December 2021, when its rate stood at a record-low 0.1 percent.
Related Topics
Recent Stories
Pakistan's total liquid foreign reserves reach $ 13.42 billion
European stock markets head into Easter break with slight gains
Over Rs 64 billion disbursed among deserving, needy under Benazir Kafaalat schem ..
Battles, bombardment in Gaza as US says Israel talks back on
Aeon & Trisl signifies back-to-back successes by securing the No. 1 Award at the ..
China lifts punitive tariffs on Australian wine
Asian markets mixed after Fed official floats rate cut delay
CCP to sign MoU China’s market regulatory
Attaullah Tarar’s success notification from NA-127 challenged
Rupee gains 01 paisa against dollar
PSX closed at historic high level of over 67,000 points
PSX witnesses positive trend today
More Stories From Business
-
Minister expresses anguish over alleged use of poor-quality material
22 minutes ago -
Commerce Minister initiates push for E-commerce growth with in-house briefing
52 minutes ago -
Pakistan's total liquid foreign reserves reach $ 13.42 billion
58 minutes ago -
European stock markets head into Easter break with slight gains
13 minutes ago -
Korean envoy promises all efforts to enhance direct trade with Faisalabad
1 hour ago -
Russian Ambassador congratulates Jam Kamal on assuming charge, discusses trade
2 hours ago
-
Aeon & Trisl signifies back-to-back successes by securing the No. 1 Award at the Emaar & Top Award a ..
2 hours ago -
Development of SMEs govt's top priority: Rana Tanveer
3 hours ago -
Asian markets mixed after Fed official floats rate cut delay
12 minutes ago -
CCP to sign MoU China’s market regulatory
12 minutes ago -
Rupee gains 01 paisa against dollar
12 minutes ago -
PSX closed at historic high level of over 67,000 points
12 minutes ago