The Bank of England raised interest rates by another quarter of a percentage point to 4.25%, Sky News reports on March 23.
The decision of the monetary policy committee was a response to the increase in inflation in February 2023 and the financial turmoil due to the risk of bankruptcy of the largest banks in the US and Switzerland. He was supported by seven of the nine board members.
Some have speculated that in the face of financial instability, the bank could halt the rise in borrowing costs, the fastest rise since it was granted independence from monetary policy in 1997.
The minutes indicate that the Bank’s Financial Policy Committee “considered that the UK banking system maintains strong capital and liquidity positions and is well positioned to continue to support the economy in a wide range of economic scenarios, including during a period of higher interest rates. The FPC assessed that the UK banking system has remained strong.
Source: Rossa Primavera
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