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The Bank of England expects to raise interest rates sharply

The Bank of England expects to raise interest rates sharply

The Bank of England is likely to raise interest rates significantly today. Financial experts expect the Bank of England to raise interest rates significantly from the current 2.25% in order to control high inflation. The talk is that the bank will set the interest rate at 0.75 point to three percent. This will be the largest increase in 33 years.

BoE chief Andrew Bailey indicated in mid-October that the increase could be higher than the 0.5 per cent that the Bank of England raised rates last time. This means that loans and mortgages are becoming more expensive again.

The Bank of England also intends to provide current estimates of economic development and inflation. Analysts expect the economic outlook to continue to deteriorate and that the UK faces a longer and deeper recession.

The Federal Reserve raised US interest rates again

The US Federal Reserve raised its key interest rate sharply yesterday as part of its fight against high inflation. As expected, it decided to raise interest rates by 0.75 percentage points to a range of 3.75 to 4.00 percent, the highest level since 2008. This is the fourth consecutive increase of 0.75 percentage points and the sixth this year.

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