Sunday, June 23, 2024

Bank of England interest rate rise by 0.5%

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The Bank of England MPC (Monetary Policy Committee) has voted 6-3 in favour of increasing the Bank rate by an additional 0.5% taking the rate up to another high of 3.5%.

The current rate is the highest it has been since 2008.

Of the 3 that voted against the increase, 2 wanted the rate to remain at its previous level of 3%, whereas the other wanted to increase rates by a further 0.25%.

Prices are set to continue to rise

It is thought that the UK’s inflation rate would continue to rise into 2023 before taking a sharp fall in mid-2023 to somewhere way below the 2% target in the next 2 -3 years. Essentially the UK is bracing itself for quite a long and drawn-out recession.

During the most recent Autumn Statement where it was announced that the extension of the Energy Price Guarantee will cap household unit energy prices leading to a reduction in the MPC’S forecast for inflation in Q2 2023.

During the minutes that were taken during the meeting the MPC said:

The labour market remains tight and there has been evidence of inflationary pressures in domestic prices and wages that could indicate greater persistence and thus justifies a further forceful monetary policy response.

Boost News Desk
Boost News Desk
Robert Haylor has 14 years of web development experience, starting out as a web developer whilst still in his university dorm room at Birmingham City University. With a background and a strong interest in website design & development he is skilled in a variety of programming languages including PHP, MySQL, CSS3 and HTML5. As Managing Director of Boost Digital Media, he regularly jumps on to client projects on a daily basis as well as ensuring the company strategy is being implemented and is delivering results.

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