Bank of England Holds Rates at 3.75%, Warns Middle East Conflict Could Force Future Rises
Central bank also unveils surprise plan to sell government bonds back to the Treasury, a move that could affect public finances ahead of next month's budget.
The Bank of England has kept its main interest rate unchanged at 3.75%, while warning that continued fighting in the Middle East could push it to raise borrowing costs amid growing concerns over inflation, according to the bank's announcement reported by The Guardian.
The central bank said escalating conflict in the region posed a risk to the outlook for prices, adding that any further deterioration could force policymakers to reconsider the current stance on rates.
In a separate and unexpected move, the Bank of England announced plans to sell billions of pounds worth of UK government bonds back to the Treasury. According to the bank, the step is intended to prevent additional turbulence in the gilt market, where government debt is traded.
The Guardian reported that the decision on bond sales could carry significant implications for the state of public finances ahead of the government's budget statement next month.
The Bank of England did not specify a timeline for a potential change in interest rates, saying its response would depend on how the geopolitical situation and inflationary pressures evolve.
Further details on the bank's reasoning and the scale of the bond sale plan were not immediately available in the source material.
Sources
- Bank of England holds interest rates at 3.75% but warns war could force future rises — The Guardian — World
EGazette summarizes reporting from multiple sources; follow the links for the originals.
Related articles
Fed Chair Kevin Warsh Wins Unanimous Vote to Raise Interest Rates Amid White House Pressure
The Federal Reserve, led by chair Kevin Warsh, voted unanimously to raise interest rates for the first time in three years, according to a report by The Guardian.
Fed Raises Interest Rates for First Time This Year, NPR Explainer Breaks Down the Mechanics
NPR News reports the Federal Reserve increased its benchmark rate this week, and outlines in a new explainer how the move ripples through the economy.
Bank of Japan Raises Interest Rate to 31-Year High Amid Inflation Concerns
The central bank lifted its policy rate by 25 basis points to 1.25% in a split 7-2 vote, citing inflation risks, according to Anadolu Agency.
Ratcliffe Says UK Is 'On the Slide,' Cites Taxes and Immigration
The Manchester United co-owner and Ineos founder, who has lived in Monaco since 2020, blamed Britain's decline on high taxation and immigration policy.
Ineos Founder Sir Jim Ratcliffe Says He Has Lost Confidence in UK, Calls for North Sea Investment
The billionaire chemicals magnate and Manchester United co-owner told the BBC he believes Britain is "on the slide" and urged greater investment in North Sea oil and gas.
Japan Lifts Interest Rates to 31-Year High as Oil Prices Ease on Saudi Pipeline Hopes
Central bank tightens policy to curb inflation while UK retail sales rise and Brent crude falls on reports of a swifter Saudi pipeline repair
Comments
Loading comments…