The Bank of England raises interest rates to a 13-year high.

The UK's central bank has announced its interest rate decisions. In line with market expectations, the Central Bank increased the policy rate by 25 basis points to 1 percent.

The Bank of England (BOE), while raising the policy rate to the highest level since the financial crisis, drew attention to the fact that the economy is on the way to contraction under double-digit inflation pressure. BOE increased the policy rate by 25 basis points to 1 percent. According to the survey data of expert economists, the expectation was that the interest rate would be increased to 1 percent. Six officials in the committee voted for the 25 basis point increase, while three officials supported the 50 basis point increase. In these requests, Michael Saunders, Catherine Mann and Jonathan Haskel expressed their concerns, in particular about rising wages. Although the BOE stated that they expect the UK to enter a technical recession, it predicted that the economy will shrink by close to 1 percent in the last quarter of 2022. He noted that the economy will contract by 0.25% in 2023. Despite the fact that the economy is expected to remain stagnant in the coming years, two officials argued against implementing the recommendation that more interest rate hikes should be undertaken if necessary. According to these data, the bank predicted that the contraction in the country would converge to 1 percent in the last quarter of the year, and that it would be 0.25 percent in 2023. The growth expectation for 2022 was maintained at the level of 3.75 percent. The bank also shared its inflation expectations. Accordingly, the bank predicted that inflation would rise above 10 percent in October.