Setting and Announcement of Policy Rates by the Central Bank of the UK
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The interest rate announcement by the Bank of England (BOE) is a key event indicating the direction of the UK's monetary policy. Through the Monetary Policy Committee (MPC), the BOE sets the policy interest rate to achieve its inflation targets. The MPC typically meets once a month to analyze domestic and international economic conditions and decide on any necessary changes to the policy rate.
The policy interest rate serves as a benchmark for interbank lending rates and influences borrowing costs for businesses and individuals. When interest rates decrease, borrowing costs fall, encouraging consumption and investment. Conversely, when interest rates rise, borrowing costs increase, which tends to restrain consumption and investment. This mechanism allows the BOE to control inflation and impact economic growth.
The BOE's interest rate announcement has a significant impact on financial markets, making it highly important for investors and economists. Unexpected rate changes or statements can lead to market volatility. The BOE's interest rate announcements are often accompanied by quarterly inflation reports, providing a comprehensive outlook on monetary policy.
| Date | Value | Related Instruments Price Volatility | ||||||||
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| Forecast | Actual | Deviation | 1 min later | 5 min later | 10 min later | 15 min later | 30 min later | 60 min later | ||
