Results of the meeting of the Central Bank of England, which decided to raise the interest rate, immediately reflected on the course of the pound of sterling in relation to the US dollar. According to the auction, the pound course jumped sharply by 0.8 percent to 1.3366 dollars.
Bank of England raised a key rate from 0.1 percent to 0.25 percent per annum. The meeting of the Central Bank Pound was trading at 1,3361 dollars. After solving the regulator, the national currency went up. The Bank of England became the world’s first large central bank, which raised the base rate after the occurrence of the coronavirus pandemic.
The Bank’s Monetary Policy Committee (MPC) pointed out the likelihood of a further increase in the rate: “Some moderate tightening of monetary policy during the projected period is likely to be necessary for the sustainable achievement of the target inflation rate of 2 percent.” Investors, in turn, are counting on the next increase in the banking rate up to 0.5 percent to the Martam meeting and that it will reach 1 percent by September, reports Reuters.
On the eve of the meeting, it became known that inflation in the UK in annual terms at the end of November grew by 5.1 percent. This is the highest inflation rate in the country over the past 10 years. Clothes, fuel and used cars have risen in price. From July to November, inflation in the country rose to a 3.1 percentage point, which became a record rapid increase in the history of the United Kingdom.