The Bank of England raised its key rate to 4.5% per annum – Kommersant

The Bank of England raised its key rate from 4.25% to 4.5% per annum, according to the official message regulator. 7 out of 9 members of the Monetary Policy Committee (MPC) voted in favor of the increase. It is noted that the increase is being undertaken to achieve the inflation target of 2%.

“The economy has been subjected to a series of large, recurring shocks. Monetary policy is designed to ensure an adjustment to these shocks and a sustainable return of inflation to the target level of 2% over the medium term,” the Bank of England said in a statement.

According to the forecast of the profile committee, the key rate will reach a peak of 4.75% in the fourth quarter of 2023, after which, according to the plan, a gradual decrease to 3.5% will begin.

“The committee will continue to monitor indicators of inflationary pressures, including labor market tightness, wage growth and service price inflation. The Committee will adjust the rate as necessary to return inflation to the target level of 2% in the medium term,” the regulator said in a statement.

In the first quarter of 2023, the inflation rate was 10.2%. The indicator exceeded the forecasts of the PrEP Committee. Unexpected growth was recorded in the consumer segment, in particular, grocery. The British regulator expects a sharp decline in inflation in April, in particular, by reducing the cost of players and households on electricity. At the same time, the equalization of food prices will go slower than previously expected, the British Central Bank stated.

Grigory Leiba