The Bank of England creates a surprise by raising its rate

By fashionlifeshopping 02/05/2022 1322 Views

For subscribers onlyBy Fabrice Nodé-Langlois Published , Updated

The Threadneedle Street institution decided on Thursday to raise its rate by 0.15 points. It is thus the first of the G7 to take such a measure.

It's the Christmas surprise. While most economists were betting on a first rise in the Bank of England's key rate next year, probably in February, the venerable Threadneedle Street institution took them by surprise. It decided on Thursday to raise its rate by 0.15 points to 0.25%. The Bank of England thus becomes the first central bank of a G7 country to take such a monetary tightening measure. The day before, the US Federal Reserve had indicated that it was considering three rate hikes in 2022, while the ECB does not expect a hike before 2023.

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La Banque d’Angleterre crée la surprise en relevant son taux

The Bank of England faced the same dilemma as other central banks: continue to support the economy as the new wave of Covid-19 threatens activity, or tighten credit conditions to tame inflation. On the one hand, the number of contaminations is exploding: 63,000 new daily cases on average over the last seven days in the United Kingdom. The other…

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— Siren Fri Apr 24 17:41:17 +0000 2020