MPC Press Release – July 2022

Uncertainties in the global economy have heightened since the last MPC meeting in May 2022. Headline inflation in several Advanced and Emerging Market economies has drifted further above-set targets, amid escalating energy and food prices, as well as persistent and broadened supply chain bottlenecks. These trends have prompted swift and coordinated monetary policy responses by major central banks. In Advanced Economies, the U.S. Federal Open Market Committee, the Bank of England, and more recently, the European Central Bank, have raised interest rates and signalled more aggressive rate increases to anchor inflation expectations. In a similar direction, central banks in several Emerging Market and Developing Economies have also moved to tighten their monetary policy stance in response to rising inflation and currency pressures.