In the UK, the Bank of England raises interest rates by 50 basis points, to 1.75%, expects a recession

The Bank of England (BoE) decided to raise the benchmark interest rate by 50 basis points to 1.75%, in another attempt to fight inflation in the United Kingdom, which reached its highest level in more than four decades, after concluding the monetary policy meeting on Thursday (4). Britain’s BC’s decision came in line with analyst expectations.

This is the sixth consecutive time that the Bank of England has raised interest rates since the end of last year. Until June, however, the Bank of England was raising the rate by 25 basis points at a time. Eight of the Bank of England’s nine board members voted on Thursday to raise the key rate to 1.75%. The defector defended a 25 basis point lift to 1.50%.

In the meeting minutes, the Bank of England expected annual UK consumer inflation (CPI) to peak at 13.2% in the fourth quarter, down from 9.4% in June.

Still in the document, the Bank of England predicts that the British economy will enter a recession from the last quarter of 2022. The recession, according to BC Britain, should extend for five quarters.

The Bank of England also revealed a proposal to reduce its stock of government bonds, or the so-called government bonds. The idea is that the foundation will sell 10 billion pounds in silts every quarter. The proposal will be voted on at the next monetary policy meeting in September. With information from Dow Jones Newswires.