Daily Management Review

Bank of England ponders new interest rate hike


According to Catherine Mann, a member of the Bank's monetary policy committee, the Bank of England may increase its benchmark interest rate once more in the future in order to achieve its inflation target.

Following its February meeting, the Bank of England increased its benchmark interest rate by 50 basis points, from 3.5 percent to 4 percent last week. It is presently at its highest level since October 2008, when it reached 4.5%.

At a conference in Budapest, Mann was cited as saying, "We have to stick to the end, and in my opinion, the next step on the bank rate problem is more likely to be another raise, rather than a decline or holding (at present level)."

She claims that the UK is experiencing the consequences of the coronavirus pandemic, Brexit, the energy crisis, and "negative supply shock," and that if the risk of rising inflation persists, the Bank will need to raise the base interest rate once more, according to the Guardian.

source: theguardian.com