Those in favour of further rate increases point to the current rate of core inflation, which does not include more volatile price increases such as those of food and energy
– the pace of price rises with the most volatile factors stripped out – is not yet falling, the Bank is forecast to increase rates for a 15th consecutive time.
Core inflation remained unchanged at 6.9 per cent in July, indicating that price increases are being driven by domestic factors such as wage growth, which are thought to be most responsive to changes in interest rates.called for the Bank to increase the rate to 5.5 per cent or even 5.75 per cent, from its current level of 5.25 per cent, when the monetary policy committee meets in a few weeks’ time.
Rate-setters have indicated they believe they need to keep raising borrowing costs, to remove spending power from the economy and encourage people to save instead. Those in favour of a further increase point to the current rate of core inflation, which does not include more volatile price increases such as those of food and energy.While the Consumer Prices Index rate of inflation fell from 7.9 per cent in June toThis could be evidence of how embedded price rises have become, they argue.that are linked to the base rate.
If it works as intended, an increase can lower the rate of price increases, but a side effect is that it slows down economic growth, which risks a recession.Some economists and politicians fear there is a risk the UK will be tipped into recession if the Bank moves too aggressively, pointing to early signs that
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
For a last-minute bank holiday break, England's smallest county is the perfect answerAfter years of intense lobbying from disgruntled residents, the independence of the county – temporarily relegated to being a district of Leicestershire – was restored in 1997
Read more »
Why the Georgia Court Will Keep the Trump Case—and Why It Shouldn’tWhat happens in Fulton County has to stay in the Fulton County Courthouse
Read more »
Date of Bank of England's next interest rates announcement and why they could rise to 5.5%The Bank of England's Monetary Policy Committee (MPC) votes eight times a year to determine policy on interest rates
Read more »
England's discipline issues persist; Steve Borthwick's anonymous backs | Ireland's strength in depthSaturday's 29-10 defeat for England to Ireland in Dublin brought more negativity, and another red card: this time to Billy Vunipola.
Read more »