BOE Lifts Key Interest Rate, Says It May Tighten Again as Banks Are Seen to Be Resilient
23 Março 2023 - 09:32AM
Dow Jones News
By Paul Hannon
The Bank of England raised its key interest rate Thursday, a
fresh sign that policy makers around the world are determined to
press down on inflation despite strains in the banking system.
The central bank had previously indicated that it might pause a
series of rate increases that dates back to December 2021, but an
unexpected pickup in inflation during February helped persuade
policy makers that another increase in borrowing costs was needed
to cool prices rises.
Policy makers said the U.K.'s banking system "remains
resilient," and warned they may need to raise the key rate
"If there were to be evidence of more persistent pressures, then
further tightening in monetary policy would be required," the BOE
said in a statement.
Repeating the pattern of recent decisions, seven members of the
Monetary Policy Committee voted to raise the key interest rate to
4.25% from 4%, while two voted to leave borrowing costs unchanged.
That left borrowing costs at their highest level since October
Write to Paul Hannon at firstname.lastname@example.org
(END) Dow Jones Newswires
March 23, 2023 08:17 ET (12:17 GMT)
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