British policy interest rates are likely to more than double by spring next year. Because the Bank of England (BoE) has accelerated the fight against high inflation in the country.
The financial market expects The interest rate will rise from the current 1.75% to 4% in May 2023, which will increase borrowing costs for households and businesses.
Mr. Paul Dells, Chief British Economist at Capital Economics predicts that Interest rates are likely to rise to 3%, but added that “Right now, I don’t want to jump to conclusions. And the interest rate at 4% is no longer an impossible thing.”
The interest rate was just 0.1% in December 2021, but has risen steadily since then as the BoE seeks to curb inflation.
UK inflation is at a 40-year high of 10.1%, but Citi analysts The group issued a warning this week that UK inflation is likely to hit 18.6 percent next year as energy prices skyrocket.
By InfoQuest News Agency (26 Aug 65)
Tags: BoE, Bank of England, England, policy interest rate, british economy