Bank of England looking into continuously rising inflation in the U.K.

By Nikita Chaurasia  | Date: 2022-08-02

Bank of England looking into continuously rising inflation in the U.K.

The Bank of England has reportedly stated that it will take aggressive measures, if necessary, to prevent the inflation issue from becoming a prolonged challenge.

Sources claimed that the central bank might bring an unusual hike of a half-percentage point in interest rate as soon as this week, the clarity of which will be revealed in the monetary policy announcement scheduled to be held on Thursday UTC 07:00 A.M. (GMT 11:00 A.M.) by Governor Andrew Bailey and other members.

U.K.’s central bank is estimated to suggest elevating interest rates by 50 basis points after other central banks across the world have raised borrowing rates markedly in the last week, despite the likelihood of an economic downturn.

In June, Britain's primary inflation indicator reached a 40-year high of 9.4 %, spurring some analysts to increase their prediction for inflation to 12%. However, this could be only because central banks are commonly concerned about future inflationary pressures.

In a way, the Bank of England can take solace from a precipitous drop in how much consumers are anticipating the prices to climb in the coming years, as confirmed by critical surveys. If rising inflation expectations become embedded, they may trigger higher remuneration demands, which may fuel yet more inflation in the long term.

It is worth mentioning that the growth in salary is booming, but much of the raise is due to one-time bonus payments which are aimed at luring or retaining employees as companies grapple to find individuals who can fill open positions.

In addition, to pay hikes, high inflation could become ingrained in the financial system if businesses continue to lift their prices in response to escalating costs.

Meanwhile, these complexities are set against the backdrop of the race to be the next Prime Minister, with both candidates - Rishi Sunak and Liz Truss - proposing tax and spending plans that are likely to stem a different type of economy.

Source credit:

https://money.usnews.com/investing/news/articles/2022-08-01/bank-of-england-probes-the-persistence-of-uks-inflation-surge

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More >>

More News By Nikita Chaurasia

Tatas in plans to acquire Bisleri in a deal worth USD 856 million

Tatas in plans to acquire Bisleri in a deal worth USD 856 million

By Nikita Chaurasia

India's fast-moving consumer goods company, Tata Consumer Products Ltd is reportedly all set to acquire drink company, Bisleri International in a deal worth USD 856 million (₹7000 crores), reported the packaged water makers chairman, Ramesh...

Ukio raises $28M to offer comfort to working professionals across Europe

Ukio raises $28M to offer comfort to working professionals across Europe

By Nikita Chaurasia

Ukio, an apartment rental agency in Barcelona, Spain, has reportedly raised $28 million (€27 million) in a Series A round of funding. Apparently, the cash injection consists of over $17.5 million (€17 million) in equity and more than $10...

Amazon’s AWS unveils 2nd infrastructure region in Hyderabad, India

Amazon’s AWS unveils 2nd infrastructure region in Hyderabad, India

By Nikita Chaurasia

IT service management company, Amazon Web Services, Inc. (AWS), has recently announced the unveiling of another leading AWS infrastructure region in India, the AWS Asia Pacific (Hyderabad) Region. Starting this week, the startups, developers, ente...

Beijing reports increase in COVID-19 cases after first death in six months

Beijing reports increase in COVID-19 cases after first death in six months

By Nikita Chaurasia

World's most populous country, China has recently reported the fatalities of three people in Beijing as the first fatalities from coronavirus in the last six months, with the rise in recorded new cases despite following the strictest zero-COVID p...

India flags concern as rich nations want to extend mitigation to agriculture

India flags concern as rich nations want to extend mitigation to agriculture

By Nikita Chaurasia

During the ongoing COP27 (UN climate summit) in Egypt, India has countered the developed world’s effort for extending the scope of mitigation to agriculture, stating that rich nations are not seeking to mitigate emissions by modifying their lif...