8/4, 1:01 PM (Source: TeleTrader)
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Bank of England hikes interest rate by expected 50 bps

The Bank of England increased on Thursday its policy rate by the expected 50 basis points to 1.75%, with all nine voting members supporting the hike as part of the central bank's goal to reduce inflation to the 2% target. Today's rate hike marks the bank's largest increase since 1995.

The bank warned that annual inflation is now expected to soar to 13% in the last quarter of the year and remain elevated throughout the majority of 2023 before returning to the targeted range in 2025.

The British economy will likely enter a recession in the last quarter of 2022 that will last for five consecutive trimesters, with the GDP plunging as much as 2.1%, the report added.

Baha Breaking News (BBN) / ND