The Bank of England raised the rate to 3.5%
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Bank of England raised key interest rate to 3.5% from 3%. This was the ninth rate increase in a row. The increase came on the back of rising prices, which hit a 41-year high in October.
The Bank of England’s Monetary Policy Committee said that “further increases in the bank rate” may be needed. “The labor market remains tight and there is evidence of inflationary pressure on domestic prices and wages, which could indicate greater resilience and thus justify a further robust monetary policy response,” the Bank of England said.
Bank of England Governor Andrew Bailey, in a letter to Treasury Secretary Jeremy Hunt, said Bank of England forecasts suggest that inflation in the UK has peaked. According to official data, consumer price inflation fell to 10.7% in November from 11.1% in October. This year-on-year drop of 0.4 percentage points was the largest since July 2021, according to Reuters.
Earlier, the US Federal Reserve System (FRS), following the results of the December meeting, slowed down the pace of raising the key rate to 0.5 percentage points, setting it at 4.25-4.5% per annum.
Read more in the publication “Kommersant” “The Fed has slowed down”.
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