fbpx
  • About us
  • Advertise
  • Contact
  • Nominate
  • Client’s Voice
  • Login
  • Register
📖 Magazine
The Global Economics
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
The Global Economics
No Result
View All Result
Home Non Banking Funds

Bank of England plans for its 10th successive interest-rate hike, stiffens for shallow recession

Riya Thomas by Riya Thomas
February 2, 2023
in Funds, The Global Economics, Top Stories
Reading Time: 3 mins read
0
Bank of England plans for its 10th successive interest-rate hike, stiffens for shallow recession

Bank of England plans for its 10th successive interest-rate hike, stiffens for shallow recession

27
SHARES
152
VIEWS
FacebookTwitterRedditWhatsAppLinkedInShare Link

Bank of England’s decision to increase rates comes after Andrew Bailey, the Governor disclosed the growth and inflation forecasts as the policymakers see a positive change for the UK economy in the future

The Bank of England is likely to push its interest rates higher for the 10th time alongside the predictions of inflation becoming more constant in the UK economy. Experts foresee that the central bank would increase its standard lending rate by 4%, which would be the highest rate since 2008. Some economists and investors also anticipate this rate hike, to be the last of its cycle, bringing relief to borrowers. The decision to increase rates comes after Andrew Bailey, the Governor disclosed the growth and inflation forecasts as the policymakers see a positive change for the UK economy in the future.

The governor earlier this month stated that the country could still face a recession, but it could be less severe or “shallower” than anticipated in November. The International Monetary Fund (IMF) on Tuesday gave its forecast of the UK being the only major economy that would fall into recession in 2023, with an expected economic contraction of 0.3 percent.

Jeremy Hunt, British Chancellor conceded the economy’s bleak outlook but claimed that the country’s long-term growth prospects are more favorable. The Bank of England could update its outlook for the economy from the current prediction of a recession lasting for at least eight quarters. An annual update of the economy’s supply potential is yet to be released by the officials along with a survey of wage growth. This could also mean that inflation could continue and would impact increasing wage rates, forcing companies to raise prices.

BOE’s and its persisting efforts to Control Inflation

The Bank of England has increased the interest rates consecutively for more than a year now. The base interest rate was at just 0.1% during December 2021, as officials tried to encourage consumer spending after the pandemic had a hard-hitting effect on the economy. The bank’s decision to bring in measures that would tighten the monetary policies was based on the efforts to bring inflation under control.

The CPI (Consumer Price Index) inflation rate fell slightly to 10.5 percent in December, down from 10.7 percent in November. Financial institutions see the rate hike on Thursday as the final hike in the cycle with a 0.5%-point increase, while other economists estimate another 0.5%-point hike in March.

The money markets, on the other hand, haven’t been fully priced in a hike at this meeting. Investors have reduced their expectations when rates have increased to more than 4% since December. The decision to have interest rate hikes on Thursday would be the fourth half-point hike in the cycle.

Officials have increased the three-quarters of points in November due to the mini-budget introduced by the Liz Truss government creating havoc in the UK economy. Economist also states that the decision to increase rates is crucial as the government would focus more on bringing inflation under control keeping in mind the damage inflation could bring forward.

The Bank of England’s decision follows the US Federal Reserve’s quarter-point rate increase on Wednesday night, which indicated a slowdown in its tightening spree. The European Central Bank later Thursday is expected to raise its key rate by half a point to 3%.

Tags: Bank of Englandrate hikerecessionukUK economy
Riya Thomas

Riya Thomas

Related Posts

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy
Economy

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

by Riya Thomas
March 21, 2023
First Republic Shares Plummet Amid Liquidity Fears
Banking

First Republic Shares Plummet Amid Liquidity Fears

by Anuj Singh
March 21, 2023
Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated
Technology

Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated

by Rahil Adnan
March 21, 2023
UEM Edgenta Paves the Way for Non-Clinical Tech Companies To Improve Healthcare Services
Exclusive Coverage

UEM Edgenta Paves the Way for Non-Clinical Tech Companies To Improve Healthcare Services

by The Global Economics
March 21, 2023
Saudi Real Estate Refinance Company (SRC) mulls its largest refining deal worth $1.3bn with Alrajhi
Islamic

Saudi Real Estate Refinance Company (SRC) mulls its largest refining deal worth $1.3bn with Alrajhi

by Riya Thomas
March 20, 2023
Previous
Next
Facebook Twitter Instagram Youtube LinkedIn Soundcloud
The Global Economics

The Global Economics Limited is a UK based financial publication and a quarterly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

DMCA.com Protection Status

  • Privacy
  • Legal
  • Terms of Use
  • Client’s Voice
  • Server Status

norton verified - the global economics

Latest Posts

First Republic Shares Plummet Amid Liquidity Fears

First Republic Shares Plummet Amid Liquidity Fears

March 21, 2023
Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

March 21, 2023
Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated

Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated

March 21, 2023
Download The Global Economics PWA to your mobile or Desktop
PWA App Download
Download The Global Economics Android App to your mobile or Desktop
Android App
Download The Global Economics IOS App to your mobile or Desktop
IOS App

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

No Result
View All Result
  • About us
  • Awards
  • Magazine
  • Client’s Voice
  • Exclusive Coverage
  • Nominate
  • Login
  • Sign Up

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

Welcome Back!

Sign In with Facebook
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00
Go to mobile version