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The Bank of England is likely to raise interest rates

Economists expect the Bank of England to hike interest rates to 0.75% after Russia’s war in Ukraine pushed oil prices to a 13-year high earlier this month.

The Bank of England is expected to hike interest rates for the third time since December on Thursday as it moves faster than other central banks in tackling a global wave of inflation fueled by rising energy prices.

Economists expect the Bank of England to hike interest rates to 0.75% after Russia’s war in Ukraine pushed oil prices to a 13-year high earlier this month. The US Federal Reserve on Wednesday raised its short-term interest rate to 0.25% in a bid to tame the worst inflation since the early 1980s. The Fed had kept it near zero since the coronavirus pandemic two years ago.

The European Central Bank left interest rates unchanged last week but announced an early exit from its economic stimulus efforts to combat record inflation in the 19 countries that use the euro. The Bank of England began raising interest rates in December amid concerns about rising consumer prices as the world began to recover from the pandemic and demand for energy and commodities needed by industry increased.

Even before Russia’s invasion of Ukraine, the Bank of England expected consumer price inflation to peak at around 7.25% in April, more than triple its 2% target. The Resolution Foundation, a think tank focused on helping low-income families, said last week inflation could now peak at over 8.4%, pushing inflation to its highest level since 1982. Central banks in other countries could soon catch up with the Bank of England. The Federal Reserve has signaled it could raise interest rates six more times this year.

https://www.financialexpress.com/economy/bank-of-england-likely-to-raise-key-interest-rate/2464169/ The Bank of England is likely to raise interest rates

Chris Barrese

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