The Bank of England's Monetary Policy Committee has hinted that further interest rate rises are on the horizon, after it hiked borrowing rates for the fourth consecutive meeting.
The Bank of England is set for only modest interest rate tightening in the coming months to deal with high inflation fuelled by supply chain backlogs, according to a senior official.
Local authorities in the UK borrowed just £130m from the Public Works Loan Board in January, as the cost of borrowing leapt following December's Bank of England interest rate rise.
The Bank of England is widely expected to increase interest rates for the second time in two months this week as it continues to try to get inflation under control.
The House of Lords Economic Affairs Committee said there is no convincing case for a Bank of England digital currency, raising concerns it could impede on payment privacy.
The Bank of England has raised the cost of borrowing for the first time since the onset of Covid-19 despite fears of the Omicron variant slowing the economy, citing worries about inflation.
The Bank of England must not delay raising interest rates despite the economic risks around the Omicron variant of Covid-19, the International Monetary Fund has said.
The Bank of England’s base rate will remain at its all-time low of 0.1% after the Monetary Policy Committee voted to hold fire on an increase – despite predicting inflation will reach 5% next Spring.
Some central banks, including the Bank of England, may need to take additional actions if inflationary pressures persist past the middle of next year, according to the IMF.
Heightened inflation caused by global supply chain issues and labour shortages could continue into the middle of next year, according to the Bank of England’s new chief economist.
Inflation could run above the Bank of England 2% target going into 2023, as supply shortages led to CPI spiking this year, according to ratings agency Standard and Poor’s.
The Bank of England has signalled it could tighten its monetary policy slightly faster than had been expected as the recovery from Covid-19 gets underway and inflation continues to run above its 2%...
The UK’s debt repayments will be favourable, despite risks stemming from an elevated deficit and future Brexit-related shocks, according to ratings agency Moody’s.
The House of Lords Economic Affairs Committee has written to chancellor Rishi Sunak to clarify the working relationship between the Bank of England and department throughout Covid-19.
UK GDP is forecast to grow by 7.25% this year, as Covid-19 restrictions are lifted – the fastest growth since the Second World War, according to the Bank of England.
The Bank of England has written to banks asking them to take measures to prepare for any future decision to cut interest rates below zero later this year.
