Bank of England raises interest rate to 13-year high

Bank of England building

The Bank of England raised the base interest rate from 0.75 to 1% per annum, to a maximum in 13 years, according to the website of the regulator.

This is the fourth consecutive rate increase since December 2021. The decision to raise it was made against the backdrop of rising inflation. In March, it rose in the UK by 7% compared to March last year, which is about 1 p.p. above the February forecast.

As noted in the message of the Bank of England, global inflationary pressure increased sharply after the start of Russia's special operation in Ukraine. This includes rising concerns about further disruption to the supply chain, fueled by the deteriorating covid-19 situation in CHINA.

The Central Bank gave the first official forecast on the depth of the recession Economy

The next meeting of the regulator is scheduled for June 16. The regulator expects inflation to continue rising throughout the year to just over 9% in the second quarter and to average just over 10% at its peak in the fourth.

The day before, on May 4, the US Federal Reserve System (FRS) for the first time in 22 years raised the base rate by 50 bp at once, from 0.25–0.5 to 0.75–1% per annum.

See also British Foreign Minister on the failure of negotiations with Lavrov 06:18

Read on RBC Pro Pro Delisting Russian companies from foreign exchanges:how it affects stocks Articles Pro The dark side of the state defense order: what to consider,Don't Go to Jail Pro Amazon Instructions: Crazy Ideas That Pay Off.Investor's Digest Articles Pro Strong HR Brand:should it be built in turbulent conditions Pro x The Economist instructions Oil or guns:How Increased Defense Spending Is Affecting the EconomyPro EconomyChinafalls, but the authorities deny everything. Is a Crisis Possible in China?