Bank of England Boosts Rates to 13-Year High as Inflation...
May 5, 2022 17:08:14 GMT -5
Post by shalom on May 5, 2022 17:08:14 GMT -5
Bank of England Boosts Rates to 13-Year High as Inflation Expected to Hit Double Digits
By Tom Ozimek May 5, 2022 Updated: May 5, 2022
Britain’s central bank has raised its key interest rate to 1 percent, the highest level in 13 years, as policymakers scramble to curb soaring inflation that has risen faster than wages and eroded the purchasing power of many households.
The Bank of England announced on May 5 that its rate-setting Monetary Policy Committee (MPC) voted 6–3 for an increase of 25 basis points, or 0.25 of a percentage point, bringing the benchmark interest rate to a level not seen since 2009.
Three of the nine MPC members voted for an even steeper rate increase of 50 basis points, which would have matched the hefty hike announced by the Federal Reserve a day prior as the U.S. central bank similarly struggles to contain runaway prices.
U.S. consumer prices rose at a pace of 8.5 percent in the year through March, the highest since 1981. In the UK, that rate was 7.0 percent, with inflation hammering economies around the world and putting pressure on central banks to act.
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