Скачать или смотреть Bank of England raised its main interest rate

(3 Aug 2023)
RESTRICTION SUMMARY:

UK POOL
London - 3 August 2023
++STATS ON SOUNDBITE++
1. SOUNDBITE (English) Andrew Bailey, Bank of England Governor:
"Consumer price inflation fell further to 7.9% in June. That was what we expected to see and that's good news. Inflation will, we believe, continue to fall over the coming months. That reflects the fact that monetary policy is restrictive. It's working to bring inflation down. Our job is to make absolutely sure that inflation falls all the way back to the 2% target and stays low. So today we've increased bank rate by 0.25 percentage points to 5.25%."
++BLACK FRAMES++
2. SOUNDBITE (English) Andrew Bailey, Bank of England Governor:
"Low and stable inflation is the foundation of a healthy economy. High inflation hurts the least well-off the most."
++BLACK FRAMES++
3. SOUNDBITE (English) Andrew Bailey, Bank of England Governor:
"But let me be clear, we do expect that core inflation ease over the rest of the year, and there are indicators that suggest it could happen faster than our projection."
++ENDS ON SOUNDBITE++

STORYLINE:
The Bank of England raised its main interest rate Thursday to a fresh 15-year high and indicated it would stay high for some time to bring down persistently high inflation — another potential blow for those seeing their rents and mortgages rise during a cost-of-living crisis.

The widely anticipated quarter-percentage point increase, to 5.25%, was the central bank’s 14th hike in a row.

There had been fears, certainly among hard-pressed households and businesses, that the bank would repeat its outsized half-point increase from June. But figures last month showing that inflation fell more than anticipated to 7.9% eased the pressure to act as aggressively again.

In new forecasts, the central bank said inflation is expected to drop to 4.9% by the end of the year, with food price rises set to moderate.

“Inflation is falling, and that’s good news,” bank Gov. Andrew Bailey said. “We know that inflation hits the least well-off the hardest, and we need to make absolutely sure that it falls all the way back to the 2% target.”

With inflation four times that level, the bank is widely expected to hike again — potentially once more in September — before taking a pause as previous increases work through the economy.

The effects of higher interest rates have a lag, most notably in the housing market, where many households will have to refinance their mortgages in the months to come at a higher cost.

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