Bank of England raises interest rate to 13-year high

The Bank of England at a meeting on Thursday raised the base interest rate to 1.25% from 1% per annum, which remains a maximum in 13 years, follows from a press release from the regulator.

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The rate was at 1.5% in January 2009.
The decision of the central bank coincided with the forecasts of analysts polled by DailyFx.

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The regulator left the volume of buybacks from the market almost unchanged, which amounted to a total of 866 billion pounds: the purchase of government bonds remained at the level of 847 billion pounds, while the volume of corporate bond purchases fell to 19.3 billion pounds from 19.6 billion before.
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The Bank of England also predicts an acceleration of annual inflation in the UK in October above 11%, as well as a decline in GDP in the second quarter by 0.3%, the regulator said in a statement following a regular meeting.

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“Inflation is expected to be above 9% in the next few months and slightly above 11% in October. The rise in October reflects higher projected energy prices for households,” the regulator said.