There is growing speculation that British Prime Minister Johnson will be replaced, even though MPs don’t currently have enough signatures to trigger a confidence vote.
British energy regulator increased the cap on bills to consumers by 54%. The price hikes will be partially offset by subsidies from the government.
The Bank of England voted 9-0 to raise its bank rate by 25 bps to 0.50%.
The European Central Bank is expected to leave its interest rate corridor intact and President Lagarde is expected to repeat during her press conference that a rate hike in 2022 is unlikely.