Bank of England Raised Interest Rate to 0.5%
The Bank of England raised its key interest rate, becoming the last of the largest central banks in the world, taking a step toward winding down incentive measures. The key interest rate of the central bank of Great Britain was raised from 0.25% to 0.5%. In addition, the leadership of the Bank of England signaled that we can expect two more rate hikes by the end of 2020. Representatives of the Bank of England unanimously voted to leave the asset purchase program unchanged at 435 billion pounds.
The leaders of the Bank of England once again stated that the exit of the country from the EU will have a negative impact on the economy for several years, while the United Kingdom will establish economic and trade relations with the EU and other countries of the world on new terms.
The central bank of Great Britain predicts stable economic growth in the next three years at about 1.7%, while inflation will be 2.2%.