Britain has once again raised interest rates
The Bank of England, the central bank of Britain, has increased the interest rate from 4.25% to 4.5%, marking the highest rate in almost 15 years.
The central bank of Britain has stated that this increase is an effort to further reduce the inflation rate.
The current inflation rate is 10.1%, which is significantly higher than the central bank’s target of around 2%.
Price inflation in Britain has been largely attributed to the rising costs of essential goods globally, particularly fuel prices.
The rise in interest rates leads to higher mortgage interest and pressure on debtors, while at the same time increasing returns for depositors.
The central bank of Britain believes the risk of an economic recession has been mitigated, but due to rising food prices, the inflation rate will not decrease as quickly as expected.
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