The Bank of England raised its key interest rate by 50 basis points, raising it for the seventh time in a row in an attempt to curb inflation.
The British central bank added in a statement, according to what was reported by Turkey’s Anadolu agency, that it had raised its interest rate from 1.75 percent to 2.25 percent, and continued: “It will continue to react aggressively, as needed, to inflation. despite the fact that the economy is entering a recession.
The Bank of England expects the UK economy to contract by 0.1% in the third quarter of this year.
The bank attributed the deflationary outlook to an additional public holiday that accompanied Queen Elizabeth’s funeral, as well as a decline in manufacturing, and added: “While inflation eased slightly to 9.9 percent in August, it is still well above the 2 percent target.”
The Bank of England’s decision follows the decision by the US Federal Reserve on Wednesday to raise its key interest rate by 75 basis points to curb record inflation spikes.
Source: El Iktisad
