The UK banking system remains stable amid volatility in global financial markets, the regulator has assured.
The Bank of England raised the rate by 25 basis points to 4.25% per annum. Rate increases have occurred 11 times in a row. This was announced by the press service of the British regulator on Thursday, March 23.
“At the meeting that ended on 22 March 2023, the Bank of England Monetary Policy Committee voted by a majority (seven to two) to raise the bank rate by 0.25 percentage points to 4.25%. Two members preferred to keep the bank rate at the 4% level,” the statement said.
The regulator’s leadership noted the volatility in global financial markets after the closure of American Silicon Valley Bank, as well as the acquisition of Swiss Credit Suisse by a UBS competitor. At the same time, it is argued that “the UK banking system remains stable”, shows good liquidity indicators and opportunities “to continue to support the economy in a wide range of economic situations, including a period of higher bank rates.”
The Bank of England has not ruled out extending the rate hike cycle, which began in December 2021, if economic conditions warrant it.
After the Bank of England’s decision was announced, the pound rose 0.5% against the dollar to $1.2336 per pound against $1.2270 at the close of trade the previous day.
The results of the regulator’s next meeting will be announced on May 11.
The actions of the Bank of England repeated the steps previously taken by the US Federal Reserve, which raised the rate by 25 basis points the previous day, to 4.75-5.0%, and the European Central Bank, which on March 16 increased the base interest rate by 50 basis points, up to 3,5%. The central banks of Switzerland and Norway also raised rates.
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Source: korrespondent
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