12:46 - 10.05.2023

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May 10, Fineko/abc.az. This summer, the leadership of the Bank of England may have to raise the level of the key rate to 5% per annum to combat the highest inflation among the developed economies of G7.

ABC.AZ reports that The Guardian informs about this with reference to the forecast of analysts of American bank Goldman Sachs.

A number of analysts assume that at the upcoming meeting, the leadership of the local currency regulator will raise the level of the key rate for the 12th time in a row.

The increase may amount to a quarter of a percentage point, as a result of which the indicator will rise to 4.5% per annum.

However, in the future, the Bank of England is unlikely to stop at this level amid the rapid growth of consumer prices in the UK, the article clarifies.

"The Bank of England may be forced to raise interest rates to 5% this summer as the UK struggles to reduce the highest inflation rates among the G7 group of advanced economies. It is linked with the fact that inflation is stuck at double digits and at the end of March made up 10.1%. British households are facing the fastest annual rise in food and drink prices since 1977," the report says.