Bank of England hikes rates for third time in a row
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LONDON (ENGLAND) – FEBRUARY 3: Andrew Bailey, Governor of Bank of England, leaves London after a press conference held at Bank of England, London, England, on February 3, 2022.
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LONDON — The Bank of EnglandAs the Russia-Ukraine crisis is likely to continue to drive inflation up, Thursday’s interest rate hike was the third in a row.
Monetary Policy Committee at the Bank approved a further 0.255% increase to its Bank Rate. This would bring it to 0.75%.
The U.K.’s inflation had already reached a record of 30 years before Russia invaded Ukraine. This caused energy prices to surge and increased inflation expectations.
The Monetary Policy Committee, which met in February 2004, imposed two back-to-back rate increases. It also increased its inflation forecast to 7.25 percent in April against the backdrop of robust growth and an active labor market in Britain.
According to The Bank, any future tightening in monetary policy will depend on inflation’s medium-term outlook. Inflation was then driven up by Moscow’s invasion of Ukraine and other threats to our energy supplies.
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