(VOVWORLD) - The Bank of England on Thursday increased interest rates by half a percentage point to a 15-year high of 4 per cent, but suggested they may have peaked. This is the central bank's tenth interest rate increase in a row, and this could be the last increase.
 Illustrative image. (Photo: AFP/VNA) |
Forecasts are that inflation in the UK has peaked and will gradually decline over the next two years, possibly falling to the 2% target level set by the Bank of England.
The bank is now predicting a mild recession, but it made clear that it thinks the UK’s economic performance will be weak for some time.