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The Bank of England increased its benchmark interest rate by 0.25%, bringing it to 5.25%. Prior to the release of the latest inflation figures, investors had anticipated a 0.5% increase. However, the data showed a significant slowdown in consumer-price rises. Now, the focus is on when the central bank will conclude its current round of monetary tightening. The Federal Reserve and the European Central Bank have not yet made any decisions for their upcoming meetings in September.
In July, house prices in Britain dropped by 3.8% compared to the same month last year, as mortgage rates increased. This information comes from a widely followed index published by the Nationwide Building Society. Although this decline represents the largest annual decrease since July 2009, the average house price in July (£260,828 or $336,000) was still higher than the average during the first five months of this year.
Following the Bank of Japan’s decision to raise its yield cap from 0.5% to 1%, the yield on Japanese ten-year government bonds reached its highest level in nine years. This adjustment to the central bank’s “yield-curve control” policy caught the markets off guard, as it was not expected until the end of the year. However, due to increasing inflation, the bank’s ultra-low interest-rate regime has faced pressure. The bank maintains that it has not tightened monetary policy, but many analysts disagree.
2023-08-03 07:40:17
Original from www.economist.com
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