The interest report issued by the bank stated that the members of the bank all voted to raise interest rates, but there are members who voted to raise interest rates by half a point, which supported the strong rises of the pound sterling, as we mentioned in our morning report.
The members of the committee voted to start reducing bond purchases and to stop reinvesting due assets.
The inflation index represented in the annual consumer price index rose to 5.4% in December, which is one point higher than what was expected in November.
Inflation is expected to rise and approach 6% in February and March and reach its peaks above 7% in April. In terms of growth, the Bank expects Omicron’s impact to be limited and short-term and UK GDP to recover in February and March.
The pound sterling reacted strongly after the meeting, as prices started to raise interest rates in the coming period, and it began to see interest rates at 1% by next May, so that the pound sterling is trading at the highest levels of 1.36, with a rise of more than 50 points.