Bank of England raised the rate by 0.5%

The Bank of England raised its key rate by 0.5% to 3.5%, while Great Britain is preparing for a prolonged recession.

The central bank also noted that the inflation rate in the country has reached its peak value, and the economy has already entered the recession stage. In November, the growth of consumer prices amounted to 10.7% compared to the same period last year. The current figure is slightly lower than the October value of 11.1%, which was the highest since 1981.

Even now, as the country faces a difficult economic outlook, most members of the bank's committee, which regulates the level of interest rates, expect to see further increases. The measure is needed to return inflation to the bank's target of 2%. 

According to the minutes of the regulator's meeting, there was considerable uncertainty regarding the economic outlook. The committee's response could have been tougher in the case of more persistent inflationary pressures.

According to Karen Ward, a strategist at J.P. Morgan Asset Management, inflation could go down, but it is too early to declare victory over it. Ward also added that she predicts a further increase in interest rates by the central bank by at least 1%. In her view, the Bank of England should remain extremely vigilant so that expectations of high inflation are not fixed.