Bank of England approves biggest rate hike since 1995

The Bank of England decided at its Thursday meeting to raise interest rates from 1.25% to 1.75%, the biggest increase since 1995 and linked to efforts to control inflation in the country.

Thus, the Bank of England decided to raise interest rates by 50 basis points to 1.75%, which is the first increase at such a rate in almost 27 years.

Bank of England officials also kept their promise to act aggressively again in the future if necessary, and similar highs are likely to be discussed at upcoming meetings.

The Bank of England’s decision was in line with most expectations, and the Bank is seeking to curb the high rate of inflation in the Kingdom with its help. The Bank of England raised its inflation estimate for 2022 from 10.25% to 13%.

Since December last year, the bank has already raised its key interest rate from 0.1% to 1.25% in response to rising costs of living.

In terms of trading, the pound sterling fell by 14:25 Moscow time, by 0.53% to $1.2085, according to data from Bloomberg.

Source: Prime + Bloomberg.