The BoE interest rate meeting in December increases 0.25% vs. 0.10% expected. | Business News Today

The BoE interest rate meeting in December increases 0.25% vs. 0.10% expected.

| Business News Today | World News

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  • Before 0.10%
  • Discount rate 8-1 votes in favor of the hike (Tenreyo disagrees)
  • Gilts buys £ 875 billion
  • Corporate Bond buys £ 30bn
  • Total asset program £ 895bn (previously £ 895)
  • Gilt purchase vote – (9-0)
  • Full statement here.

A surprise rise here from the BoE and the EURGBP dropping sharply upon publication. Omicron fears it will not be enough to keep the BoE on the sidelines and a sensible move to move to normalization in case inflation fears become more rampant. The wage hike this week would have been a concern for the BoE. They said this in their statement:

Bank staff continue to believe that underlying earnings growth has remained above pre-pandemic rates, and the Committee continues to see upside risks around the salary projection in the November report.‘.

If the ECB is accommodating later, it will watch for significant drops in the EURGBP today. FTSE lobbied, but the financiers like it. Higher interest rates work for banks as they can charge more for loans, which increases overall profitability. GBPUSD up sharply to 1.3400

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The BoE interest rate meeting in December increases 0.25% vs. 0.10% expected.

| Local Business News World news
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