The Bank of England decided to vote to raise interest rates by 75 basis points in its meeting moments ago, to reach 3%, as expected.
The interest report issued by the bank stated that the members of the bank voted by a majority of 7 members to raise interest rates by 75 basis points, while one member voted to raise interest rates by 50 basis points, and one member voted to raise interest rates by 25 basis points.
The interest statement issued by the bank stated that the gross domestic product is expected to decrease by 0.75% in the second half of this year, while the bank believes that the inflation prices represented in the consumer price index are expected to rise to 11% in the last quarter of this year, which is lower August forecast.
The bank expects that the GDP will continue to contract throughout the next year 2023 and the first half of 2024 due to the impact of high energy prices and tighter financial conditions on spending.
The pound sterling reacted negatively after the meeting and is now trading at 1.1235 levels, as the rate of increase was expected in the markets, but the negative expectations of growth negatively affected the pound.
02/11/2024
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