×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: britain | economy | short-term interest rates

Bank of England Likely to Raise Key Rate to Combat Inflation

BOE
Bank of England (Getty Images)

Thursday, 17 March 2022 06:54 AM EDT

The Bank of England on Thursday is likely to raise its key interest rate for the third time since December as it pushes ahead faster than other central banks in combating a global wave of inflation fueled by soaring energy prices.

0.75% Short-Term Rate Expected

Economists expect the Bank of England to boost its key rate to 0.75% after Russia's war in Ukraine pushed oil prices to a 13-year high earlier this month. The U.S. Federal Reserve raised its benchmark short-term rate to 0.25% on Wednesday to tame the worst inflation since the early 1980s. The Fed had left it at close to zero since the coronavirus pandemic struck two years ago.

The European Central Bank left its rates unchanged last week but announced an early exit from its economic stimulus efforts in a bid to combat record inflation in the 19 countries that use the euro.

The Bank of England began raising rates in December amid concern about rising consumer prices as the world began to emerge from the pandemic, increasing demand for energy and raw materials needed by industry.

Even before Russia’s invasion of Ukraine, the Bank of England expected consumer price inflation to peak at around 7.25% in April, more than three times its target of 2%.

Inflation Could Top 8.4%

The Resolution Foundation, a think tank focused on helping low-income families, said last week that inflation may now peak at more than 8.4%, which would push inflation to its highest level since 1982.

Central banks in other countries may soon catch up to the Bank of England. The Federal Reserve signaled that it may raise rates six more times this year.

© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


StreetTalk
The Bank of England on Thursday is likely to raise its key interest rate for the third time since December as it pushes ahead faster than other central banks in combating a global wave of inflation fueled by soaring energy prices.
britain, economy, short-term interest rates
275
2022-54-17
Thursday, 17 March 2022 06:54 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved