![Bank of England where MPC decide on interest rate hike, via r.nagy/ Shutterstock](https://reaction.life/wp-content/uploads/2023/08/shutterstock_24177508-600x375.jpg)
Bank of England follows Fed and ECB with 25 basis point interest rate hike
Cebr economists forecast another two hikes and inflation down to 4.4 per cent by end of the year
Cebr economists forecast another two hikes and inflation down to 4.4 per cent by end of the year
With inflation and wage growth both at very high levels, and unemployment remaining at a low rate, employees have been able to bargain for higher wages to cover their rising living costs.
Further rate rises risk placing pressure on a fragile system.
The fact that households are managing to save more might come as a surprise given the widespread increases in costs for food, utilities and housing.
The decision comes after Eurozone inflation increased in February.
The CEBR has revised its forecast upwards, now expecting a 0.4% contraction in GDP in 2023.
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