The Bank of England (BoE) increased this Thursday its main interest rate to its level before the Covid-19 pandemic, to counter runaway inflation that could exceed 8% in 2022.

“The monetary policy committee voted to increase the bank rate by 0.25 percentage points, to 0.75%,” the BoE explained in the minutes of its meeting. is the third consecutive time that the British issuing bank raises its rates.

For all central banks, the war in ukraine represents a new dilemma: disturbances in the energy market and other raw materials cause price spikes, which will aggravate inflation that was already accelerating sharply before the conflict as a result of the economic reactivation with the end of the restrictions against Covid-19. 19.

In the UK, inflation already reached 4.9% in January, well above the 2% annual rate pursued by the BoE. And the climbs won’t stop there, he warned.

“Inflation will continue to rise in the coming months, around 8% in the second quarter of 2022 and perhaps more as the year progresses,” the bank said in its minutes.


Trending on Canadian News  Warren Buffett reveals huge investments and criticizes Wall Street

Leave a Reply

Your email address will not be published.