British Bank raised the benchmark interest rate to 1.25%

Xinhua News Agency, London, June 16 (Reporter Huang Zemin) The Central Bank of England Bank of England announced on the 16th that the benchmark interest rate was raised from 1%to 1.25%, which was the fifth rate hike of the Bank of England since December last year.

In the minutes of the meeting announced on that day, the Bank of England stated that it is currently expected that the British GDP (GDP) will decline by 0.3%in the second quarter, and the consumer price index (CPI) will be higher than 9%in the next few months and will be in October exceeded 11%.

The Bank of England stated that the current inflation rate is far exceeding the target of 2%, mainly due to the great increase in global energy prices in the Ukraine crisis, and the new crown epidemic to promote demand to steering goods, and at the same time disturb the supply chain. The tight domestic labor market and the company's pricing strategy also affect inflation.

The British Bank also stated that it will be particularly alert to "more continuous inflation pressure", and it will make a strong response if it is necessary.

Paul Dals, an economist of Kaitou International Macroeconomic Consulting Company, said that the rate hike in June was milder, reflecting that the Bank of England pays too much attention to the weak economy and lacks enough response to the level of soaring inflation.

[Editor in charge: Feng Li]

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