Bank of England peaks borrowing cost to 4%

Marcus Amudipe
Marcus Amudipe
FILE PHOTO-People walk outside the Bank of England in the City of London financial district, in London, Britain, January 26, 2023. REUTERS/Henry Nicholls TPX IMAGES OF THE DAY

Christian George

The Bank of England has again raised borrowing costs for the 10th time in a row up to four per cent on Thursday.

This was made known a day prior to when US Federal Reserve slowed the pace of its rate hikes with a smaller quarter-point move.

The European Central Bank looks set to raise rates by half a percentage point later on Thursday to 2.5%, Reuters reported.

The increase in bank rate to 4.0% is the highest since 2008 which was 3.5%.

However, investors were largely pricing bank rate to peak at 4.5% in the middle of the year and that it may slightly drop to 4.25% reason that the economy would likely lag behind other rich nations this year.

The bank is trying to cushion the effect of the striking rate, maintaining that the feat would likely have an increasing impact on the economy and reduce inflation up to four per cent this year.

“If there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required,” the central bank’s Monetary Policy Committee said.

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