BUSINESS LIVE: Bank of England RAISES interest rates

The Bank of England has hiked interest rates from their record low of 0.1 per cent to 0.25 per cent.

The bank faces soaring inflation and fears of stagflation amid stuttering economic growth, and the BoE had previously indicated it may hold off on a hike in order to collate more data on the economic impact of the Omicron Covid-19 variant.

But with the inflation figure coming in at 5.1 per cent yesterday and the IMF urging action, the Monetary Policy Committee's policymakers have decided to make a move. 

Officials at America’s central bank expect three interest rate hikes next year, as they dramatically shifted their predictions in the face of soaring inflation.

Federal Reserve officials forecast that inflation would run at 2.6 per cent next year, compared to the 2.2 per cent projected in September, and the unemployment rate would fall to 3.5 per cent - near if not exceeding full employment.  

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