Business Desk, AnyTV, New Delhi
Published by: Deepak Chaturvedi
Updated Thu, 16 Jun 2022 05:15 PM IST
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Expansion
After the increase in interest rates by the US Federal Reserve, now the Bank of England has also given a big blow in Britain. To check the ever-increasing inflation, the interest rates have been reduced from 1 per cent to 1.25 per cent. This is the fifth consecutive increase. Significantly, inflation in the country is currently at a 40-year high of 9 per cent and the bank has warned that it may cross 11 per cent by the end of 2022.
Let us tell you that in the US, the Federal Reserve on Wednesday announced to increase interest rates by 0.75 percent. The Bank of England has warned that rising energy prices are expected to raise the cost of living even more in October, so action will have to be taken if inflationary pressures persist. Of the nine members of the bank’s monetary policy committee, six voted for raising rates to 1.25 per cent, while three favored a larger hike of 1.5 per cent. According to the report released in this regard, it is expected from the minutes of the bank meeting that the UK economy will shrink by 0.3 percent in the April-June period.