The Monetary Policy Committee has confirmed the Bank of England would begin selling gilts held in the Asset Purchase Facility later this year but markets are likely to take this move in their stride, according to industry commentators.
The central bank also predicted the UK will likely fall into a recession in the fourth quarter of 2022, as growth concerns mount off the back of the central bank raising rates by 0.5% to 1.75% today, its largest hike in 27 years. The meeting on Thursday (4 August) confirmed adjusted inflation projections would exceed 13% by the end of the year and the committee said it expected CPI to remain elevated throughout much of 2023. It maintained inflation would fall to its 2% target in two years, although this would fall further than the target to 0.8% in 2025. Should market conditions re...
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