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بريطانيا ترفع سعر الفائدة 0.5%.. وتليجراف: التضخم يصل 11% الشهر المقبل

Britain raises interest rates by 0.5% Telegraph: Inflation to hit 11% next month

Despite expectations of a recession, the Bank of England announced it would raise interest rates by 50 basis points to 2.25% for the seventh time in a year. G7 economies.

According to the Telegraph, the Bank of England last month reiterated rates by half a percentage point to 1.75% and inflation is expected to be 11% next month, lower than previously expected due to government intervention to support energy tariffs.

With Thursday’s move, the Bank of England has already raised borrowing costs for businesses and consumers to levels last seen in 2008, below 10% in an effort to curb inflation.

Like its key peers, the central bank must balance the need to prevent inflation with the damage caused by violent escalations.

Some economists believe that the UK economy is already in recession, and the Bank of England shares this view. It expects UK GDP to contract by 0.1% in the third quarter, partly due to an extra public holiday for the Queen’s funeral.

The bank’s policymakers were split this month on how bold they should be, with three members arguing in favor of a three-quarter point increase. But there was a unanimous vote to reduce Britain’s government bond holdings by 80 billion pounds over the next 12 months.

Discussions were complicated by weak sterling, which fell to a 37-year low against the US dollar on Wednesday, and a weaker currency means the UK has to pay more for energy and food imports, adding to inflationary pressures on the economy.