• Latest
  • Trending
  • All
  • News
  • Lifestyle
Bank of England Raises Rates to 5% Amid Inflation Concerns thumbnail

Bank of England Raises Rates to 5% Amid Inflation Concerns

June 23, 2023
What the EPA’s partial rollback of the ‘forever chemical’ drinking water rule means thumbnail

What the EPA’s partial rollback of the ‘forever chemical’ drinking water rule means

May 16, 2025
Senate Dems ask AG Bondi to investigate Musk-owned Starlink deals thumbnail

Senate Dems ask AG Bondi to investigate Musk-owned Starlink deals

May 16, 2025
Ocasio-Cortez Warns: Trump Admin Will Have a 'Problem' if More Democrats Arrested thumbnail

Ocasio-Cortez Warns: Trump Admin Will Have a ‘Problem’ if More Democrats Arrested

May 15, 2025
The New York Knicks Have Pushed the Boston Celtics to the Brink thumbnail

The New York Knicks Have Pushed the Boston Celtics to the Brink

May 14, 2025
Gen Z’s not drowning in buy-now-pay-later debt—yet. But experts warn it’s a luxury lifestyle trap thumbnail

Gen Z’s not drowning in buy-now-pay-later debt—yet. But experts warn it’s a luxury lifestyle trap

May 13, 2025
Traveling during hurricane season? Here's what you should know thumbnail

Traveling during hurricane season? Here’s what you should know

May 13, 2025
DHS warns of more Dem arrests after Newark ICE detention center protest — as Mayor Ras Baraka blames agency for escalation thumbnail

DHS warns of more Dem arrests after Newark ICE detention center protest — as Mayor Ras Baraka blames agency for escalation

May 12, 2025
Massachusetts suspect charged with attempting to assassinate a Cabinet nominee thumbnail

Massachusetts suspect charged with attempting to assassinate a Cabinet nominee

May 11, 2025
Scientists discover how some flowers mimic the smell of death thumbnail

Scientists discover how some flowers mimic the smell of death

May 10, 2025
State trooper points to possible weapon in John O'Keefe death – and it's not Karen Read's car thumbnail

State trooper points to possible weapon in John O’Keefe death – and it’s not Karen Read’s car

May 10, 2025
How to Address When an Employee Is Not Working Out for Your Team’s Success thumbnail

How to Address When an Employee Is Not Working Out for Your Team’s Success

May 10, 2025
New York Knicks two wins from East finals after second straight Celtics fightback thumbnail

New York Knicks two wins from East finals after second straight Celtics fightback

May 9, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact
  • Donate
Friday, May 16, 2025
66 °f
Wellfleet
58 ° Tue
63 ° Wed
68 ° Thu
61 ° Fri
  • Login
  • Register
FREE Cape Cod News
DONATE
  • FREE Cape Cod News
  • Cape Cod News
  • News
    • News
    • Massachusetts
    • Breaking News
    • Cape Cod Weather
    • Storm Watch
    • Environment
  • Politics
    • democrats
    • republicans
  • Business
    • business
    • cryptocurrency
    • economy
    • money
    • Real Estate
    • Tech
  • World
  • Entertainment
  • Lifestyle
  • Photos
    • Orleans
    • Eastham
    • Wellfleet
    • Truro
    • Provincetown
    • Brewster
    • Chatham
  • Videos
No Result
View All Result
Free Cape Cod News
No Result
View All Result
  • FREE Cape Cod News
  • Cape Cod News
  • News
  • Politics
  • Business
  • World
  • Entertainment
  • Lifestyle
  • Photos
  • Videos
Home Business

Bank of England Raises Rates to 5% Amid Inflation Concerns

FREE Cape Cod News by FREE Cape Cod News
June 23, 2023
in Business, World
Reading Time: 2 mins read
Donate
0
Bank of England Raises Rates to 5% Amid Inflation Concerns thumbnail
634
SHARES
1.4k
VIEWS
Share on TwitterShare on Facebook

The Bank of England raised its benchmark rate to 5% amid inflation concerns; UK economy faces challenges, but traders expect further hikes.

Highlights

  • BoE increases Bank Rate to 5% with a 7-2 majority vote.
  • Uncertainty remains over the magnitude of the rate hike.
  • UK economy tackles Brexit, pandemic, and gas price surges, with minimal growth expected.

Overview

The Bank of England’s Monetary Policy Committee (MPC) has made a decision to increase the Bank Rate by 0.5 percentage points to 5%. This move was supported by a majority vote of 7-2, with two members preferring to maintain the Bank Rate at 4.5%. The market-implied path for Bank Rate has risen, now averaging around 5.5% due to increases in gilt yields and mortgage rates. The MPC is closely monitoring the impact of previous rate hikes, acknowledging that the full effects may take time to be felt, particularly in the fixed-rate mortgage market.

Growth, Employment, Earnings Rise; Inflation Remains Strong

Business surveys indicate a modest quarterly GDP growth of around 0.25% during the middle of the year, while indicators of household spending have shown some improvement. Employment has seen strong growth, with a 0.8% increase in LFS employment in the three months to April. Average Weekly Earnings (AWE) have risen by 7.6% annually, exceeding expectations, but future growth is expected to ease. CPI inflation fell from 10.1% in March to 8.7% in April and remained at that level in May. Services CPI inflation and core goods price inflation have been stronger than anticipated.

Inflation Outlook: Decline Expected, Stability in Services CPI

Looking ahead, analysts project a significant decline in CPI inflation throughout the year, driven by developments in energy prices. They expect services CPI inflation to remain relatively stable, while anticipating a decrease in core goods CPI inflation later in the year. The MPC’s primary goal is to ensure that CPI inflation returns sustainably to the 2% target in the medium term. The Committee recognizes the potential for second-round effects from external cost shocks to persist longer than they initially emerged. Further tightening in monetary policy may be necessary if there are indications of more persistent inflationary pressures.

MPC Vigilant: Monitoring Indicators for Inflationary Pressures

The MPC will closely monitor indicators like labor market conditions, wage growth, and services price inflation. They aim to identify persistent inflationary pressures and will adjust the Bank Rate accordingly. The goal is to sustainably return inflation to the 2% target in the medium term, aligning with the MPC’s mandate.

Don’t miss a thing! Sign up for a daily update delivered to your inbox

Read More

Tags: businesseconomyworld news

FREE Digital Newspaper Subscription!
Sign up for your free digital subscription. The FREE Cape Cod News

Unsubscribe
FREE Cape Cod News

FREE Cape Cod News

Free Cape Cod News is what's happening in the Cape Cod, U.S and World & what people are talking about right now. Local newspaper. Stay in the know. Subscribe to get notified about our latest news.

Related Posts

How to Address When an Employee Is Not Working Out for Your Team’s Success thumbnail
Business

How to Address When an Employee Is Not Working Out for Your Team’s Success

by FREE Cape Cod News
May 10, 2025
Trump's family could make hundreds of millions from an Abu Dhabi crypto investment thumbnail
Cryptocurrency News

Trump’s family could make hundreds of millions from an Abu Dhabi crypto investment

by FREE Cape Cod News
May 4, 2025
N. Ireland: Fears Trump tariffs could impact peace agreement thumbnail
World

N. Ireland: Fears Trump tariffs could impact peace agreement

by FREE Cape Cod News
April 25, 2025
SBA Implements New Verification Measures to Combat Loan Fraud thumbnail
Business

SBA Implements New Verification Measures to Combat Loan Fraud

by FREE Cape Cod News
April 12, 2025
Load More
Please login to join discussion

Follow Us on Twitter

FREE Cape Cod News - Your source for local Cape Cod news, latest breaking U.S. and World news. Every day, all day. Subscribe for your favorite categories.

  • Trending
  • Comments
  • Latest
Senate Dems ask AG Bondi to investigate Musk-owned Starlink deals thumbnail

Senate Dems ask AG Bondi to investigate Musk-owned Starlink deals

May 16, 2025
What the EPA’s partial rollback of the ‘forever chemical’ drinking water rule means thumbnail

What the EPA’s partial rollback of the ‘forever chemical’ drinking water rule means

May 16, 2025
UN arms embargo on Iran expires as world ignores Trump administration's "snapback" claims thumbnail

UN arms embargo on Iran expires as world ignores Trump administration’s “snapback” claims

October 19, 2020
Senate Dems ask AG Bondi to investigate Musk-owned Starlink deals thumbnail

Senate Dems ask AG Bondi to investigate Musk-owned Starlink deals

0
What the EPA’s partial rollback of the ‘forever chemical’ drinking water rule means thumbnail

What the EPA’s partial rollback of the ‘forever chemical’ drinking water rule means

0
Ocasio-Cortez Warns: Trump Admin Will Have a 'Problem' if More Democrats Arrested thumbnail

Ocasio-Cortez Warns: Trump Admin Will Have a ‘Problem’ if More Democrats Arrested

0
What the EPA’s partial rollback of the ‘forever chemical’ drinking water rule means thumbnail

What the EPA’s partial rollback of the ‘forever chemical’ drinking water rule means

May 16, 2025
Senate Dems ask AG Bondi to investigate Musk-owned Starlink deals thumbnail

Senate Dems ask AG Bondi to investigate Musk-owned Starlink deals

May 16, 2025
Ocasio-Cortez Warns: Trump Admin Will Have a 'Problem' if More Democrats Arrested thumbnail

Ocasio-Cortez Warns: Trump Admin Will Have a ‘Problem’ if More Democrats Arrested

May 15, 2025

FREE Cape Cod News On Twitter

Today’s News

  • What the EPA’s partial rollback of the ‘forever chemical’ drinking water rule means May 16, 2025
  • Senate Dems ask AG Bondi to investigate Musk-owned Starlink deals May 16, 2025
  • Ocasio-Cortez Warns: Trump Admin Will Have a ‘Problem’ if More Democrats Arrested May 15, 2025
  • The New York Knicks Have Pushed the Boston Celtics to the Brink May 14, 2025
  • Gen Z’s not drowning in buy-now-pay-later debt—yet. But experts warn it’s a luxury lifestyle trap May 13, 2025
FREE Cape Cod News

Copyright © 2024 Free Cape Cod News

Navigate Site

  • About
  • Advertise
  • Privacy & Policy
  • Contact
  • Donate

Follow Us

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • FREE Cape Cod News
  • Cape Cod News
  • News
    • News
    • Massachusetts
    • Breaking News
    • Cape Cod Weather
    • Storm Watch
    • Environment
  • Politics
    • democrats
    • republicans
  • Business
    • business
    • cryptocurrency
    • economy
    • money
    • Real Estate
    • Tech
  • World
  • Entertainment
  • Lifestyle
  • Photos
    • Orleans
    • Eastham
    • Wellfleet
    • Truro
    • Provincetown
    • Brewster
    • Chatham
  • Videos
  • Login
  • Sign Up

Copyright © 2024 Free Cape Cod News