GB: The Bank of England raises its key rate by half a point


GB: The Bank of England raises its key rate by half a point again |  Photo credit: Shutterstocks

GB: The Bank of England raises its key rate by half a point again | Photo credit: Shutterstocks

LONDON, Sept 22 (Reuters) – The Bank of England (BoE) on Thursday announced a half-point hike in its key rate and said it would continue to “respond forcefully, as much as necessary” to the inflation despite the economy entering recession.

The British base rate is thus increased to 2.25% against 1.75%, as expected by the Reuters consensus.

The BoE now forecasts a 0.1% contraction in UK gross domestic product (GDP) in the third quarter, a second straight decline in economic activity, which meets the definition of a technical recession.

The half-point hike was voted in by five of the nine members of the Monetary Policy Committee (MPC), with three others voting for a three-quarter-point hike and one for a 25 basis point hike. only.

The MPC has also voted unanimously to reduce the portfolio by a total of 100 billion pounds sterling within a year of the portfolio of 838 billion (around 960 billion euros) of government and corporate bonds. built up in recent years through purchases on the markets. (Report David Milliken, French version Marc Angrand, edited by Sophie Louet)





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