Two European countries are working hard to bring down inflation.

On June 22, the Bank of England (BoE) and the Swiss National Bank (SNB) decided to raise interest rates to address issues related to inflation.

The central banks of England and Switzerland continue to raise interest rates. (Source: Reuters)

Specifically, the Bank of England (BoE) decided to raise interest rates by 0.5 percentage points, from 4.5% to 5%, the highest level since 2008, and this rate hike also marks the sharpest increase since February 2023.

Official figures released on June 21st showed that inflation in the UK remained at 8.7% in May 2023. Notably, core inflation, excluding food and energy prices, unexpectedly rose from 6.8% to 7.1%, the highest level since 1992.

Analysts warn that the Bank of England could raise its benchmark interest rate to 5.75%, or even 6%, early next year if inflation shows no significant signs of slowing down and the labor market remains hotter than expected.

High interest rates could push the UK economy into recession.

Meanwhile, the SNB raised interest rates by another 0.25 percentage points to 1.75%. This marks the fifth consecutive increase and is seen as a move to address inflation-related issues in the European country.

Inflation in Switzerland fell to 2.2% last month, but remains above the SNB's target of 0-2%.

The decision to raise interest rates by these two banks comes after the European Central Bank (ECB) increased interest rates by 0.25 percentage points to 3.5%. The ECB has signaled that further increases may be necessary.

Source: https://baoquocte.vn/hai-nuoc-chau-au-miet-mai-ha-nhiet-lam-phat-231995.html