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’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.
Government borrowing in the financial year to date is around 25% lower than previously forecast, as the Covid-19 recovery continues, according to the Office for National Statistics.
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 government has failed to budget for £30bn of additional costs resulting from Covid-19 over the next three years, according to the Office for Budget Responsibility.
The Bank of England has outlined plans to explore how negative interest rates could be implemented for the first time, to help the UK’s economic recovery from Covid-19.
The Bank of England will continue to review the potential of negative interest rates, to help stimulate the UK’s economic recovery from Covid-19, it said today.
Savings made by private sector firms and employees during lockdown could help pay for tax rises to cover the repayment of government Covid-19 debt, according to the National Institute of Economic and...
The government will need a plan to manage its Covid-related debt in place by the autumn, according to former permanent secretary to the Treasury, Lord Macpherson.
