Source: Bank of England
The Bank of England hiked its key policy rate by 25 basis points and hinted at the possibility of additional rates in the coming months. EWU is down 2.24%, while EZU is down 2.36%.
- The Bank of England raised its Bank Rate by 25 basis points to 1% from 0.75% in March, following the rate hikes implemented in December, February, and March.
- The central bank noted that inflation has already accelerated to 7% in March, well above its 2% target.
- Inflation is now expected to accelerate to 10% this year, as energy and food prices are seen to be hit by the ongoing conflict between Russia and Ukraine.
- The growth of consumer prices is expected to ease in 2022, hovering closer to the target in around two years.
- The BoE defended the rate hike as its main tool to bring down inflation, noting that it cannot address global supply problems.