September 22, 2022: -The Bank of England comes across with a crucial choice as it navigates a decreasing currency and the effects of a recent government energy cost package that has changed the inflation outlook.
The Monetary Policy Committee is announcing its recent decision on Thursday, with analysts divided more than whether to expect a hike to interest rates of 50 or 75 basis points.
According to initial estimates from the Office for National Statistics, U.K. headline inflation dipped to an annual 9.9% in August, down from July’s 10.1%, led by a decrease in motor fuels.
But economists were skeptical as to if this signaled that inflation has peaked and are awaiting details in the upcoming week on a new government fiscal package, which will include a cap on household energy bills.
In the last meeting, the Bank of England projected that inflation would hit 13.3% by the end of this year, with Citi and Goldman Sachs forecasting eye-wateringly high consumer price index prints next year.
Much has changed after that. The Bank’s inflation projections will likely be revised in light of the announcement of measures from new Prime Minister Liz Truss’s government.
Yet the additional government support may result in higher medium-term inflation, economists have warned, while the MPC is also navigating sluggish growth and a tight labor market.
Other central banks worldwide have acted aggressively to bring down inflation. On Tuesday, Sweden’s Riksbank is hiking interest rates by 100 basis points, warning that inflation was “undermining households’ purchasing power.”
The U.S. Federal Reserve is expected to lift its benchmark borrowing rate by 75 basis points on Wednesday, the third consecutive hike of that magnitude.
Markets expect the Fed to maintain its hawkish trajectory until inflation is controlled. This will supply further momentum for the U.S. dollar as investors seek a haven in the rising rate environment.
Meanwhile, earlier this month, the European Central Bank announced a 75 basis point increase to its benchmark deposit rate.
The British pound reached a fresh 37-year low against the dollar last week amid fears for the economy’s health, as the country’s cost-of-living crisis begins to weigh on activity.
The old prestige pyramid—where Ivy League degrees and blue-chip consulting backgrounds paved the way to the CEO seat—is cracking.
Loud leaders once ruled the boardroom. Charisma was currency. Big talk drove big valuations.
But the CEOs who make history in downturns aren’t the ones with the deepest cuts
Companies invest millions in leadership development, yet many of their best executives leave within a few years. Why?
The most successful business leaders don’t just identify gaps in the market; they anticipate future needs before anyone else.
With technological advancements, shifting consumer expectations, and global interconnectedness, the role of business leaders
May 28, 2025: SpaceX’s latest Starship test flight, conducted on May 27, 2025, ended in failure when the spacecraft’s upper stage broke apart during its descent over the Indian Ocean.
May 27, 2025: Greek Coastguards Charged Over 2023 Pylos Migrant Shipwreck That Killed Hundreds
May 27, 2025: Volvo to Cut 3,000 Jobs in Europe as Part of $1.9B Restructuring Amid EV Slowdown and Tariff Pressures.
The old prestige pyramid—where Ivy League degrees and blue-chip consulting backgrounds paved the way to the CEO seat—is cracking.
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you
