In the statement made by the BoE, it was reported that the policy interest rate was increased from 0.75 percent to 1 percent and the decision was taken with the votes of 6 members of the Monetary Policy Committee (MPC). The market expectation was that the policy rate would be increased by 25 basis points.
With this decision of the bank, the policy rate in the country has been increased for the fourth time since December last year, reaching its highest level since 2009.
In the minutes of the Board, it was noted that the other three members voted to increase the policy rate by 0.5 percentage points to 1.25%.
“After Russia’s invasion of Ukraine, global inflationary pressures intensified sharply,” the minutes said. This has led to a significant deterioration in the world and UK growth outlook.” Statements were included.
In the minutes of the Monetary Policy Committee, it was reported that all these developments greatly exacerbated the combination of negative supply shocks for the UK, and concerns about food supply increased with the Russian invasion of Ukraine.
It was noted in the minutes that the inflation in the UK was at 7 percent as of March, and that inflation is expected to continue its upward trend for the rest of the year.
In the minutes, it was stated that the inflation in the country is expected to reach its peak level by exceeding 10 percent in the fourth quarter of 2022, after rising above 9 percent in the second quarter of 2022.
Inflation in England, which was 7 percent as of March, reached the highest level of the last 30 years.
Source: Cumhuriyet Gazetesi – Gündem by www.cumhuriyet.com.tr.
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