The Bank of England raised rates to 4%

The Bank of England decided to raise the base rate by 0.5 percentage points. – from 3.5% to 4% per annum, according to message on the regulator’s website.

They explained that consumer inflation, which amounted to 10.5% in December in annual terms, began to slow down, but still remains well above the target of 2%. The rise in prices, the regulator notes, is associated with the consequences of the special operation of the Russian Federation in Ukraine, the rise in the price of imports, as well as the situation in the British economy itself.

In total, since December 2021, the regulator raised the interest rate from 0.1% to 4%, which, according to its estimates, will quickly reduce inflation this year. The economy of the kingdom, added the Bank of England, is still moving towards a recession, but the recession will be less deep and prolonged than previously expected.

As notes The Independent, this rate hike was the tenth in a row.

The rate increase to 4% is in line with analysts’ expectations, according to Reuters polls. Today, the ECB is also expected to raise the ECB rate to 2.5%.

Yesterday, February 1, the US Federal Reserve System (FRS) decided again raise base rate, this time it increased by 0.25 percentage points – up to 4.5-4.75% per annum. The regulator stressed that the growth of the base rate will continue in the future, as this is necessary for the formation of a stable monetary policy that can return inflation to the 2% target. At its last meeting in 2022, the Fed raised rates by 0.5 percentage points to 4.25-4.5%, the highest level since 2007.