It is the eighth interest rate hike since December 2021 and the highest increase in more than 30 years: the central bank of Great Britain is making an interest rate jump of 0.75 percentage points to 3.00 percent. The step is not unexpected, but the decision was not unanimous.
As expected, the British central bank has accelerated the pace of interest rate hikes. The Bank of England announced interest rate increases of 0.75 percentage points to 3.00 percent after its interest rate meeting in London. Analysts had largely expected the step. Most recently, the key interest rate had only been raised by 0.5 percentage points. It is the eighth interest rate hike since December 2021 and at the same time the highest increase since 1989.
The decision to raise interest rates was not unanimous. Seven members of the nine-member Monetary Policy Committee MPC voted in favor of this rate hike, one member voted for a rate hike of 0.25 percentage points and one representative for 0.50 percentage points. The move is intended to help combat high inflation in the country. According to the bank's estimates, it reached a new record high of 10.9 percent year-on-year in October.
In Norway, too, the central bank increased its key interest rate. It rises by 0.25 points to 2.5 percent, as the central bank announced. It was the fourth straight raise, but lower than the previous three. However, Norge Bank announced that it is likely planning another rate hike in December to fight inflation. At the same time, the economy is doing well and unemployment is at a record low.
On Wednesday, the US Federal Reserve raised interest rates by a further 0.75 percentage points in the fight against stubbornly high inflation. The new interest rate margin there is now between 3.75 and 4.0 percent and thus at the highest level since January 2008. It was the sixth increase in the key interest rate this year and the fourth increase of 0.75 percentage points in a row.
