Verenigd Koninkrijk Interest Rate

The Bank of England raised its main rate by 50bps to 1.75% during its August 2022 meeting, the sixth consecutive rate hike, and pushing borrowing costs to the highest level since 2009, matching market forecasts. It is the biggest rate increase since 1995. A near doubling in wholesale gas prices since May feeds through to retail energy prices and it will exacerbate the fall in real incomes for UK households and further increase UK CPI inflation in the near term, the bank said. According to new BOE projections, CPI inflation is expected to rise to 13.3% in October, and to remain at very elevated levels throughout much of 2023, before falling to the 2% target two years ahead. Looking at growth, the United Kingdom is now projected to enter a recession in the fourth quarter which would last for five quarters.