Advertisement“The headline from the Bank of England is just the latest macroeconomic warning,” said Pavel Molchanov, an analyst with Raymond James. AdvertisementIn Britain, inflation is even higher, reaching 9.4 percent in the 12 months ending in June, driven by higher energy and food prices. The Bank of England rate hike follows one announced last week by the Federal Reserve, which has been raising rates at a faster clip. Higher rates also makes borrowing more expensive, slowing down business investment, home-buying and debt-fueled transactions more broadly. The Bank of England wants to cut the rate of inflation to 2 percent, but policymakers believe prices could worsen before they improve.

Source: Washington Post August 04, 2022 18:39 UTC