Bank of England raises UK interest rates to 4%

The Bank of England raised interest rates for the tenth consecutive time on Thursday from 3.5% to 4%, but the bank says inflation may have peaked and the UK recession will be shorter and shallower than previously feared.

[{"selector":"#anim-6a8e5770-436a-493f-95fb-80ee61b3b5e4 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(14.421875043721322%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-c7b03eae-080c-439f-b03a-78585e5ac370","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-03714c9b-8c1f-4d90-831a-bca8e95df14a","keyframes":{"transform":["translate3d(115.18987%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] credit-google

[{"selector":"#anim-0a6fecfd-1b72-477e-ba9e-7c93c85a3e0d [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-25.039062402216338%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-eae5baa8-a7f7-459d-82ff-8dd3139e8a97","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-0341e2fe-eeaa-434a-ac15-b4bb9f7b27b8","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The bank's Monetary Policy Committee (MPC) said it needed a 0.5 percent increase after private sector wages rose more than the central bank's previous forecasts, putting more pressure on mortgage lenders and businesses struggling to pay their loans. Was. credit-google

[{"selector":"#anim-4a2d9fc1-2e6b-4986-b80b-3084ee80a84f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(21.70246678468378%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] We haven't changed our estimate of longer-term impacts, but we've brought some of them forward and we think they're probably coming faster than we previously thought. credit-google

Based on the numbers for business and to a lesser extent the numbers on investment, we think these impacts are coming faster than initially envisaged.

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[{"selector":"#anim-05f44994-b08e-4edf-ba70-99bc834c52e2 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.502852785250266%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-378e5388-88b6-4c21-ace6-136483397ed6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-55537d33-748f-4f7d-ac48-5b6cc843be37","keyframes":{"transform":["translate3d(0px, 264.20495%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Predicting a shallow recession, the bank said economic output would fall 1% from peak to trough, compared with a 3% decline expected at the time of its November outlook. credit-google

Bank staff raised their forecast for UK GDP growth in the last quarter of 2022 to 0.1%.

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[{"selector":"#anim-577b5b9c-bb4f-4c50-a55c-1dd7f1bc655a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-14.847760767872705%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] However, the economy is projected to contract in each quarter of 2023 and the first quarter of 2024 before staging a modest recovery. credit-google

[{"selector":"#anim-3a6cd4d5-a6c3-4c9b-a83f-10cf59c93271","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-34c49098-be66-43d0-8350-f8f1aa5c0664","keyframes":{"transform":["translate3d(-116.84211%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-15af9cf7-51ef-4b1e-9983-b243935ae57e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-5.777027007474523%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The bank expects the headline rate to fall sharply from 10.5% in December this year to 3.5% by the end of the year and then to 1% in 2024. The inflation target of the bank is 2%. credit-google

[{"selector":"#anim-528d5f39-c32e-445c-942b-258821e07382 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(34.179687330805216%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-f539e6c0-b1f3-4cde-936d-22d3a676dc5e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d7a4986d-df3b-4d98-ac2a-9bb6f0ac96d7","keyframes":{"transform":["translate3d(119.43319%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The Bank calculated that Jeremy Hunt's tax hike, which is due to hit household incomes from April, would cut GDP growth by 0.4% next year. credit-google