Economic Buzz: Interest Rate Hiked To 13 Year High In England

5 May 2022 , 05:24 PM

The Bank of England raised its key rate by a quarter-point as expected to its highest level since 2009 as policymakers try to combat rising inflation that is now expected to peak above 10 percent this year. Policymakers decided to raise the key interest rate, the bank rate, to 1.00 percent from 0.75 percent. Members voted for a fourth consecutive hike that took the rate to a 13-year high. CPI inflation was expected to rise to around 9 percent in April, and to increase further in subsequent months, averaging slightly over 10 percent at its peak in the fourth quarter of 2022. GDP is estimated to have risen by 0.9 percent in the first quarter of 2022, stronger than expected in the February Monetary Policy Report. But the level of GDP is expected to be broadly unchanged in the second quarter.Powered by Commodity Insights