The Bank of England (BoE) announced a surprise interest rate cut to 0.1% on March 11, a reduction from 0.25%, a move primarily aimed at cushioning the economic blow of the COVID-19 pandemic. However, the bank also indicated that inflation could prove more persistent than initially expected, and policymakers now anticipate CPI inflation to remain above its 2% target until the second half of 2022. This suggests that the BoE may have to raise rates sooner than the market currently expects.
Tag: Economic outlook
Another Jolt of Uncertainty for a Global Economy Mired in It
With the ink barely dry on the winter´s misery of Ukraine, a new storm is brewing. Inflation is gripping the globe, economies are teetering on recession, and central banks appear helpless, stuck between a rock and a hard place. As governments and policymakers struggle to find a path through the storm, there´s a growing sense of unease. It´s as if the world is caught in a recurring nightmare, with each jolt of uncertainty pushing us further into the darkness.