Economic Buzz: Bank Of England Raises Interest Rates By 25 Basis Points To 50 Basis Points

3 Feb 2022 , 06:16 PM

The Bank of England yet again increased interest rate amid rising inflation and signaled modest tightening in the months ahead. The Monetary Policy Committee of the BoE decided to increase the key interest by 0.25 percentage points to 0.50%. The bank had raised its rate by 0.15 percentage points at its December meeting, which was the first such move since August 2018. The Committee voted unanimously for the Bank of England to begin to reduce the stock of UK government bond purchases, financed by the issuance of central bank reserves, by ceasing to reinvest maturing assets. The Committee also voted unanimously for the Bank of England to begin to reduce the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, by ceasing to reinvest maturing assets and by a programme of corporate bond sales to be completed no earlier than towards the end of 2023 that should unwind fully the stock of corporate bond purchases.

Powered by Commodity Insights