UK central bank rise up interest rate 0.5 to 5 pct

LONDON, June 22 (KUNA) -- The Bank of England (BoE or the central bank of UK) on Thursday, increased the interest rate by 0.5 to 5 percent, for the 13th time since December 2021 to help slow down inflation rates that reached 8.7 percent.

In a statement, the monetary policy committee at the BoE confirmed that seven from its nine members voted to increasing the interest rates to reach five percent, the highest since October 2008.
Stability of inflation rate stood at 8.7 last May, 0.3 percent higher than previous expectations, while inflation in basic materials is still "very high," the statement added. Stressing that they will continue to take all necessary measures in order to push inflation rate in the medium term to its appropriate level at two percent.
In the same context, the British Treasury Minister Jeremy Hunt described the inflation crisis as "the biggest challenge" that faces the British economy now".
"The government is firmly determined to solve the inflation crisis with all force and as soon as possible so that it does not worsen further in the future", Hunt commented in a press release.
He clarified that inflation kept rising because of the decrease in the value of salaries and pensions, as well as impeding economic growth.
On Wednesday, the British Statistics Office announced said that inflation rate at 8.7 percent is the highest level since 1982, while prices of basic materials continue to grow at the fastest rate since 1977. (end) mrn.nhq.