Connect with us

Hi, what are you looking for?

Featured

Bank of England hikes interest rate to four per cent

The Bank of England (BoE) has raised interest rates for the tenth time running.

The hike comes as the UK slips into an estimated two years of recession.

And bankers warn of inflation.

BoE Governor Andrew Bailey was one of seven on the nine-person panel to agree interest rates must rise.

The rate was pushed up 50 basis points and is now running at four per cent – its highest level in 15 years.

Home and businesses are already feeling the financial pain of increased prices and commodities.

Earlier this week the International Monetary Fund (IMF) said the UK would be the only rich economy to contract this year – but grow next year.

Bank of England Governor Andrew Bailey

Mr Bailey said:

“Since the November monetary policy report, we’ve seen the first signs that inflation has turned the corner.”

“We have done a lot on rates already.

“The full effect of that is still to come through.

“But it’s too soon to declare victory just yet, inflationary pressures are still there.

“There’s also been a marked increase in inactivity amongst 50 to 65 year olds.

“Many say they’ve retired early making a choice about the life they would like to live.

“At the same time, however, many people report that they’re affected by long term illness, a number of these people say they’re unlikely to come back into the labour market.

“This significant and lingering fall in the labour supply weighs on the UK economy’s potential.”

Chancellor Jeremy Hunt backed the Bank’s hike.

With a March 15th budget looming Mr Hunt said he would resist “the urge to fund additional spending or tax cuts through borrowing, which will only add fuel to the inflation fire and prolong the pain for everyone”.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Featured

King Charles III is to be the first British monarch to address the French Senate when he makes a state visit to France and...

Featured

Ukraine President Volodymyr Zelensky has personally thanked Britain for its “big support” in its war against an invading Russian army. Mr Zelensky flew into...

Europe

On 1 May this year Belgian journalist Roland Delacore wrote a personal opinion piece about the Church of Almighty God, which was published in...

Europe

Aigul Kuspan, the ambassador of Kazakhstan to the Kingdom of Belgium and head of mission of the Republic of Kazakhstan to the European Union,...