Bank of England expects new highs; in october, inflation in the country reached the highest mark of the last 41 years
O Bank of England (Central Bank of England) increased this Thursday (15.Dec.2022) the interest rate by 0.5 percentage points, raising the index to 3.5% 🇧🇷the highest in the country in 14 years. The information is from the news agency Reuters🇧🇷
The 9th consecutive increase seeks to contain inflation growth, which was 10.7% in November, and reach the inflation target of 2%. In October, the index was 11.1%, the highest recorded since 1981. The measure also seeks to help “sustaining growth and employment”, according to a statement from the Bank of England
Despite the highs, the British MPC (Monetary Policy Committee), responsible for the change, said that new highs could happen.
“The majority of the Committee judges that, if the economy evolves broadly in line with the projections of the November Monetary Policy Report, further bank rate increases may be necessary for a sustainable return of inflation to the target”, said the committee.
The unemployment rate also increased slightly to 3.7% in October. The value of gas remains high, “reflecting concerns about the impact of Russian restrictions on gas supplies and an expectation that supply restrictions would continue into next winter.”
The Bank of England said in November that the country would be entering a “long recession”in addition to predicting a 0.3% drop in GDP (Gross Domestic Product) in the last quarter of 2022.
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