The American Federal Reserve did it, the European Central Bank too, and the Bank of England has just announced in its turn a new increase in its interest rates, by 0.5 percentage point. Unheard of for thirty years.
With our correspondent in London, Emeline Wine
The new interest rate set by the Bank of England is 1.75%, returning to the level of December 2008, in full subprime crisis. The institution had not raised its rates by 0.5 points since 1995.
This is the sixth increase since December, but so far the governor had stuck to increases of a quarter point. Last month, however, Andrew Bailey admitted that it might be time to break away from this policy and embrace bigger hikes, especially as the European and US central banks have already crossed the line. not in recent weeks.
Towards recession?
With higher interest rates, the Bank of England hopes to curb inflation: by making borrowing (and therefore credits) more expensive, by discouraging spending and by encouraging savings.
The Bank of England expects inflation to exceed 13% in the fall, largely due to energy prices. The United Kingdom is expected to enter recession at the end of the year.