Bank of England raises rates as inflation pressures mount




The raised its main interest rate to 0.25% on Thursday as inflation pressures mounted in Britain, becoming the first major central bank in the world to raise borrowing costs since the coronavirus pandemic hit last year.


Most economists polled by Reuters had expected the BoE to keep Bank Rate at 0.1% due to a new surge in coronavirus cases.





The BoE’s nine-member Monetary Policy Committee voted by 8-1 to raise Bank Rate to 0.25% from 0.1%.


The MPC also voted 9-0 to keep the BoE’s government bond-buying programme at its target size of 875 billion pounds ($1.16 trillion). The BoE has also bought 20 billion pounds of corporate bonds.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link