By George Ward
Amid the rising inflation, the Bank of England (BoE) has increased its interest rate again. The interest rate is now at 3%. The central bank and others across the globe have been battling with inflation in 2022.
The Bank of England, in its fight against inflation, has hiked interest rates. The central bank’s latest rate is the highest in the past 33 years.
Hopefully, this might curtail the rate of borrowing in the country. Interest Rate or borrowing cost has increased from 0.75% to 3%. The United Kingdom is dealing with double-digit inflation.
It had a 10.1% inflation rate last month. This was the second in the previous three months. In the UK, the MPC is in charge of establishing national interest rates. According to the report:
“Inflation is extreme. It is far more than our 2% aim. So our responsibility is to ensure that inflation falls to our 2% benchmark.”
Interest In Crypto Continues To Rise
Meanwhile, interest in digital currencies has been increasing despite the current inflation rate. For example, in September, the trading volume of the British Pound jumped by about 1,150%.
Recently, the UK hosted a BTC Collective Conference. The conference was attended by Lisa Cameron, a member of the parliament and leader of The Crypto and Digital Asset All-Party Parliamentary Group.
In an interview during the conference, Cameron stated that the UK is working towards becoming a hub for digital assets and crypto. However, there are various challenges the country would have to overcome.
One of them is the issue of regulation for the crypto sector. Recently, the country changed its Prime Minister to Rishi Sunak. Sunak has shown interest in crypto and hopes to help grow the industry in the UK.
According to Ed Conway, a British economist, the UK has already entered a recession that might be the worst in the country’s history. Danny Scott (co-founder and CEO of CoinCorner) agreed, saying, “recession is strong and rising daily. However, the MPC anticipates that inflation will decline rapidly in the middle of 2023.