Per CNN
Bank of England tries to fight against inflation by raising interest rates by a quarter percentage to 4.25%, its highest since 2008
3/23/2023
The Bank of England has raised interest rates for the 11th consecutive time, reaching its highest point since 2008 at 4.25%. This came after the bank unexpectedly rose rates by a quarter of a percentage point on Thursday.
The Bank of England is taking measures to fight against inflation and, like other major central banks, is now increasing the cost of banking. The bank gave a statement about inflation and how it had grown.
"(Inflation) had surprised significantly on the upside and the near-term path of GDP was likely to be somewhat stronger than expected previously.”
Consumer prices for UK citizens reportedly increased yearly to 10.4% in February. This came as the prices of hotels, restaurants, and food have soared, and the citizens are starting to feel the weight of higher costs.
The Bank of England also commented on the Consumer Price Index, saying inflation has greatly affected it. However, they said that it was likely that the CPI would still drop toward the end of the year.
The news comes as people in the US and other countries are dealing with banks defaulting. Credit Suisse, for example, could cost citizens of Switzerland $13,500 each for its emergency rescue.
This is because the Swiss Government has promised around $118 billion to backstop the emergency sale of Credit Suisse Group AG to UBS Group AG.
In the US, the Fed discount window borrowing has reached an all-time high, which was higher than its numbers in 2008. Data showed that the Fed had $152.86 billion in borrowing from the discount window, which was higher than the $111 billion during the 2008 financial crisis.
Other credit extensions have reached a total of $142.8 billion during the week, and EPFG Global data, cited by the Bank of America Corp., showed that money-market funds were able to attract $113 billion of inflows, the most since April 2020.
See flow at unusualwhales.com/flow.
Other News:
- Credit Suisse's emergency rescue could cost all of Switzerland's citizens $13,500 each
- Fed discount window borrowing reaches an all time high, higher than 2008
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