The BoE is signaling a risk of recession and 10% inflation as it raises interest rates again

The BoE is signaling a risk of recession and 10% inflation as it raises interest rates again

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It’s an article in the Reuters news agency that tells us that the BoE, the Bank of England, which is the central bank of the United Kingdom, signals a risk of recession and inflation of 10% while raising its interest rates again.

Indeed, the Bank of England issued a stern warning that Britain was in danger of a double whammy, on the one hand with a recession and, on the other, with inflation of more than 10%, when it raised interest rates on Thursday. The interest rate is at its highest level since 2009, rising by a quarter of a unit to 1%.

What is happening in England today is already happening in France and around the world.

We will face an inflationary shock that will contribute to our sinking into recession.

The BoE also expressed concern about the impact of new COVID-19 restrictions in China, which threaten to hit supply chains again and exacerbate inflationary pressures.

In England things are said a little more!

“But policymakers around the world are also trying to avoid plunging their economies into recession.

“The point is, we are now following this very narrow path,” Bailey told reporters.

The BoE said most policymakers believed that “some additional tightening of monetary policy may still be appropriate in the coming months”. He also used the word “moderate” to describe the magnitude of interest rate hikes that would follow.

The BoE said inflation in the UK would peak later than in other major advanced economies due to the ceiling on energy prices for homes. Bills jumped 54% in April and the BoE now forecasts another 40% rise in October, hurting the economy! It is obviously important and it will be the same in France or we will freeze prices and it is the budget deficit that will finance it.

Real household disposable income after taxes – a measure of living standards – is expected to fall by 1.75% this year, the biggest drop in a calendar year since 2011 and the second largest since BoE records began in the 1960s.

This is clear.

Do not blame Brexit!

We will be destroyed like the English and obviously our purchasing power will fall. We are just hypocrites in France and we do not say that.

Charles Sunnat

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Source Reuters.com here

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