London, Thursday, 16 June 2022
During its June 2022 meeting, the Bank of England raised its main Bank Rate by 25 basis points to 1.25 percent, marking the fifth consecutive rate hike and increasing borrowing costs to their highest level in 13 years as it strives to cool surging inflation.
Nonetheless, three officials voted for a larger 50 basis point hike, and the central bank reaffirmed its determination to return inflation to the 2% objective and 'act aggressively' if necessary.
Inflation is now expected to be over 9% in the next months, rising to slightly above 11% in October, while GDP growth is expected to drop dramatically in the first half of the forecast year.
Source: Bank of England //Reporting by: The Decision Maker - Finance editors