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The Bank of England raised interest rates as scheduled, but looked down on the economic outlook, and the pound fell more than 70 points in the short term

发布时间：2022-08-25 浏览：119

At 19:00 on Thursday (May 5), Beijing time, the Bank of England announced a new deal, raising interest rates by 25 basis points as scheduled. All the decision-makers voted for raising interest rates, but the central bank decided to look down on the economy next year.

As of press time, sterling fell more than 70 points to 1.2472 against the US dollar, with a cumulative fluctuation of more than 100 points.

The Bank of England raised its benchmark interest rate by 25 basis points to 1%, the highest level since February 2009, in line with market expectations. This is the fourth consecutive interest rate hike by the Bank of England, and nine people in the monetary committee voted in favour of raising interest rates. Previously, the market expected that one of them would vote in favor of maintaining the interest rate unchanged.

Bank of England: six members voted in favor of raising interest rates by 25 basis points, and three members supported raising interest rates by 50 basis points.

Most members of the monetary policy committee believed that "the degree of further tightening of monetary policy may still be appropriate in the coming months" (March: "further moderate tightening"), but two members believed that the guidance of further interest rate hikes was inappropriate.

Bank of England: the interest rate market suggests that the Bank of England will tighten further than expected in February, showing that the benchmark interest rate will be 1.9% in the fourth quarter of 2022, 2.6% in the fourth quarter of 2023 and 2.2% in the fourth quarter of 2024 (1.2%, 1.4% and 1.3% expected in February respectively)

Bank of England: the monetary policy report shows that the inflation rate peaked in the fourth quarter of 2022, with an average of slightly higher than 10% (March forecast: about 8% in April 2022); One year inflation expectation based on market interest rate is 6.65% (5.21% in February);

Based on the market interest rate, the inflation rate is expected to be 2.14% in two years (2.15% in February); According to the market interest rate, the inflation rate in 2025 is expected to be 1.30% (February forecast: 1.60%).

Bank of England: it is estimated that GDP growth in the first quarter of 2022 will increase by +0.9% (March +0.75%), due to the additional public holidays and the reduction of novel coronavirus detection; GDP growth in the second quarter of 2022 is about zero; The economy is expected to shrink by 0.25% in 2023.