The Bank of England raised the rate to its highest level since 2009

Банк Англии повысил ставку до максимума с 2009 года

The Bank Of England

The Agency also retained the volume purchase programme of government bonds at 435 billion pounds.

The Bank of England decided to increase the size of the base interest rate by 0.25 percentage points, from 0.5% to 0.75% by the end of August meeting. So now the rate is at the maximum level with the end of 2009.

The Agency also retained the volume purchase programme of government bonds at 435 billion pounds ($568,6 billion) and volume buying corporate bonds at 10 billion pounds.

The decision of the Bank coincided with the market expectations. At the June meeting for a rate rise is voted only three members of the Committee on monetary policy (Monetary Policy Committee, MPC), including the chief economist of the Central Bank Andy Haldane speaks.

Recall, the national Bank of Ukraine may go for another rate hike in September in the event of an increase of the probability of inflation risks.

Discount rate – the equivalent value of money in the economy. At this rate, the Central Bank provides funds to commercial banks who in turn lend to individuals and legal entities. Thus, the discount rate affects the cost of credit.

The rate increase shows the growth of inflation and falling economic growth in the country.

 

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