Bank of England raises key interest rate for the first time since 2018

 

For the first time since 2018, the Bank of England raised its key interest rate from 0.15% to 0.25%.

The bank made this decision taking into account the acceleration of inflation to the maximum in 10 years. Eight members of the Monetary Policy Committee voted to raise the interest rate. There was only one against this decision. At the same time, all members of the committee voted unanimously to continue the government asset purchase program.

Since June 2018, this is the first major price increase in the country.

The Bank of England said it is adjusting its policy to keep inflation at 2%.
In November, it was 1.5% against the same indicator in 2020. This is the highest value in the country in 10 years. According to forecasts of analysts, inflation in the country will reach 6% by April 2022.