Print Magazine
Brussels Morning Newspaper
Monday, June 5, 2023
No Result
View All Result
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Sustainable Perspective
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Sustainable Perspective
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
No Result
View All Result
Home Economy

UK first G7 member to raise interest rates

Nikola Kiš by Nikola Kiš
17 December 2021
in Economy
UK-first-G7-member-to-raise-interest-rates

UK first G7 member to raise interest rates

Share on FacebookShare on Twitter

Brussels (Brussels Morning) The UK is the first G7 member to raise interest rates since the start of the coronavirus crisis, the Bank of England (BoE) having increased rates on Thursday.

The US Federal Reserve System has been signalling plans to make a similar move next year, while the European Central Bank (ECB) is still maintaining its expansive policy, Reuters reported on Thursday.

This divergence reveals deep uncertainties about the effects of the spread of coronavirus on the global economy and management of inflation, which has  been surging especially quickly in the US and in the UK.

ECB President Christine Lagarde pointed out at a recent press conference that the coronavirus crisis is affecting consumption in the eurozone and jeopardising economic growth.

“To cope with the current pandemic wave some countries have introduced tighter containment measures… this could delay the recovery… the pandemic is weighing on consumer and business confidence”, she observed.

Lagarde stressed the need “to maintain flexibility and optionality” by a gradual tapering of emergency measures, rather than by scrapping all support programmes at once.

Fed to tighten monetary policy

On Wednesday, the US Federal Reserve System announced plans to scrap its emergency bond-buying in Q1 of 2022 and presented a timetable for increasing interest rates.

Jerome Powell, head of the Federal Reserve System, stated that the US is on a course for full employment and strong economic growth in 2022, stressing that rising inflation presents a more pressing risk.

The BoE decided to up the benchmark rate on Thursday, from 0.1% to 0.25%, stressing that inflation would reach 6% in April next year, which is significantly above its target of 2%.

“The Committee continues to judge that there are two-sided risks around the inflation outlook in the medium term, but that some modest tightening of monetary policy over the forecast period is likely to be necessary to meet the 2% inflation target sustainably” the bank declared.

Norway’s Central Bank upped interest rates in September this year and continues to tighten its monetary policy, announcing further rate increases in the coming period.

The Bank of Japan is to announce policies later this week, which will likely be focused on a small reduction in corporate asset purchases, given the absence of consumer-level inflation.

Tags: Bank of England (BoE)Main-SliderThe UK is the first G7 member
Facebook Twitter Youtube LinkedIn

About Us

Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.

Category

  • Ambassador’s Corner
  • Belgium News
  • Brussels
  • Commission
  • Council
  • Culture and Society
  • Diplomacy
  • Economy
  • EU Institutions
  • Europe
  • Europe With Transparency
  • Features
  • Health & Fitness
  • In Depth
  • Member States
  • Middle East Eye
  • Opinion
  • Our pick
  • Parliament
  • Place de la Bourse
  • Southeast Europe
  • Sustainable Perspective
  • The American Angle
  • The Macro-Economist
  • Uncategorised
  • US Elections
  • World

More info

  • About Us
  • Advertising
  • Cookies Policy
  • Contact Us
  • FAQ
  • Jobs

Brussels Morning Newspaper - All Rights Reserved © 2020

No Result
View All Result
  • Home
  • About Us
  • Brussels Bubble
    • Parliament
    • Commission
    • Council
  • Wider Europe
    • Member States
  • World
  • Business & Society
  • Europe With Transparency
  • Culture & Society
  • Policy Talks
    • Place de la Bourse
    • The Macro-Economist
    • Sustainable Perspective
    • Ambassador’s Corner
    • The American Angle
    • Southeast Europe
  • Print Magazine

Brussels Morning Newspaper - All Rights Reserved © 2020

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT