February 4, 2022
1 min read

Surging Inflation forces Bank of England to raise rates

Thursday’s announcement came as the UK’s annual consumer price index (CPI) inflation jumped to a 30-year high of 5.4 per cent in December 2021….reports Asian Lite News

The Bank of England (BoE) has raised interest rates for the second time in seven weeks to fight a surge in inflation.

At its meeting late on Wednesday, the bank’s Monetary Policy Committee (MPC) voted to increase the so-called “Bank of England base rate” by 0.25 percentage points to 0.5 per cent, citing “the current tightness of the labour market and continuing signs of greater persistence in domestic cost and price pressures”, reports Xinhua news agency.

Thursday’s announcement came as the UK’s annual consumer price index (CPI) inflation jumped to a 30-year high of 5.4 per cent in December 2021.

In a statement, the bank said it expected the CPI to continue to rise “to close to 6 per cent in February and March, before peaking at around 7.25 per cent in April”.

The MPC voted by a narrow majority of five votes to four, with those in the minority preferring to increase the rate to 0.75 per cent, the statement noted.

In mid-December 2021, the BoE raised the interest rate for the first time in more than three years after cutting it to a record low during the Covid-19 pandemic.

The decision came as the annual CPI inflation in the country rose to a decade high of 5.1 per cent in November last year.

ALSO READ: Bank of America slashes expected US GDP growth rate

Previous Story

US’ meticulous planning to neutralise Daesh chief

Next Story

In Pics- Rang: Celebration of colour and culture

Previous Story

US’ meticulous planning to neutralise Daesh chief

Next Story

In Pics- Rang: Celebration of colour and culture

Latest from -Top News

Trump and Xi open AI hotline

Trump and Xi agree a new channel for AI incidents and a Super Intelligence dialogue, alongside trade, energy and international security commitments, reports Asian Lite News Desk US President Donald Trump and

India’s poll chief faces pressure over voter roll row

India’s Chief Election Commissioner Gyanesh Kumar faces mounting opposition pressure after reported internal disagreements over voter-roll revisions and the nationwide Special Intensive Revision exercise, reports Asian Lite News Desk India’s Chief Election

Afghans bear brunt as Pakistan tightens pressure

A report has highlighted the growing humanitarian impact of Pakistan’s policies and military operations on Afghan refugees, students, journalists and civilians….reports Asian Lite News Desk Pakistan’s actions towards Afghanistan have imposed a

Türkiye to hand over Bashiqa base to Iraq

Türkiye and Iraq agree a gradual Bashiqa base handover as Baghdad strengthens control over Sinjar and both neighbours deepen security, trade and infrastructure cooperation…reports Arab Daily News Desk Türkiye and Iraq have
Go toTop

Don't Miss

‘False alarm’ results in King and Queen being pulled away

The King and Queen travelled to Jersey on Monday, before

UK quarantine rules discriminatory: France

France has been singled out because of the British government’s