The Bank of England increased the policy rate by 25 basis points to 1 percent.

The Bank of England (BOE) raised the policy rate to its highest level since the financial crisis. The Bank of England increased its policy rate by 25 basis points to 1 percent. Economists had expected that the interest rate would be increased to 1. While the Bank of England does not expect the UK to enter a technical recession, it has predicted that the economy will shrink by close to 1 percent in the last quarter of this year.

Accordingly, the bank predicted that the contraction in the country would converge to 1 percent in the last quarter of the year and that it would be 0.25 percent in 2023. The growth expectation for 2022 was maintained at the level of 3.75 percent.