LAST UPDATE 14:29
The Bank of England raised its key interest rate to 0.25% in today’s session, as inflationary pressures intensify in Britain.
Most economists expected the BoE to keep interest rates at 0.1% due to the new rise in cases.
The Bank of England’s nine-member monetary policy committee voted 8-1 in favor of raising interest rates.
The commission also voted unanimously to keep the bond-buying program at 75 875 billion ($ 1.16 trillion).
The BoE has also bought corporate bonds worth 20 20 billion.
Following the central bank’s decision to raise interest rates, the pound rose to $ 1.3347 from $ 1.3262 on Wednesday.
The pound strengthened by a quarter of a cent against the US dollar to its highest level since November 30, and two-year bond yields rose more than 7 basis points to 0.56%, their highest level since December 1.
“The Commission continues to believe that there are reciprocal risks to the medium-term inflation outlook, but that some moderate monetary tightening may be needed to achieve the 2% inflation target,” the BoE said.
It also cut estimates for December and the first quarter of 2022, due to the spread of Omicron.
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Source From: Capital
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