The Bank of England has matched analysts’ forecasts and has raised interest rates by 50 basis points, from 1.25% to 1.75%, the highest level since 2008. The BOE has not increased 50 bps since 1995, which is the sixth straight increase. As a result, the pound fell against the euro as well as against the dollar.
In a press conference following the Bank of England’s decision to raise interest rates, Andrew Bailey pointed out that “near-term inflationary pressures have increased significantly.” “The UK is expected to enter a recession at the end of 2022, and that is expected to be a long one.”
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