Business

BREAKING: Interest Rate, Increase to 15-Year High – Bank Of England

Published

3 years ago

May 12, 2023

522 Views

The Bank of England on Thursday lifted its key interest rate to the highest level since the 2008 financial crisis, noting inflation remained stubbornly high but that the economy would now avoid recession this year.

The BoE hiked the rate by a quarter-point to 4.5 percent — its 12th increase in a row with UK annual inflation stuck above 10 percent, fuelling a cost-of-living crisis across Britain.

Global policymakers are battling elevated inflation caused largely by runaway energy bills following last year’s invasion of Ukraine by major oil and gas producer Russia.

Following a regular policy meeting, the BoE warned of “considerable uncertainties” on when UK inflation would return to its two-percent target, as soaring food prices offset sharp drops to energy costs.

At the same time, the central bank made a record upgrade to its British GDP forecast, adding there would be only a small impact from recent turmoil in the commercial banking sector.

“Six months ago, we were expecting a shallow but long recession,” BoE governor Andrew Bailey told a press conference.

“Since then, energy prices have fallen substantially and economic activity is holding up much better than expected.”

– ‘Modest but positive’ growth –

Bailey said the UK would this year experience “modest but positive economic growth and a much smaller increase in unemployment.

“We think inflation will fall quite sharply over the coming months,” he added.

Official data Friday is expected to show the UK economy grew during the first quarter of this year after narrowly avoiding recession in the last three months of 2022.

The rate decision comes one week after UK Prime Minister Rishi Sunak’s Conservative government suffered a drubbing in local elections, as voters gave their verdict over rampant living costs despite government efforts to partly subsidise energy bills.

The nation has been plagued by strikes as high inflation erodes the value of wages. Train staff will walk out again on Friday following months of industrial action across the private and public sectors.

The latest BoE hike is set to deepen the crunch in living standards as retail banks pass on the increase, resulting in higher repayments on loans, including mortgages.

At the same time, those who can afford to save will benefit for increased fixed returns on investments.

“Although it is good news that the Bank of England is no longer forecasting recession, today’s interest rate rise will obviously be very disappointing for families with mortgages,” said British finance minister Jeremy Hunt.

– Highest inflation in G7 –

Thursday’s news took British borrowing costs to a level last seen in October 2008, before rates were slashed during the global financial crisis.

The BoE has ramped up borrowing costs from a record-low of 0.1 percent in December 2021.

Its latest hike came one week after the European Central Bank and the Federal Reserve implemented quarter-point rate increases as inflationary pressures ease only slightly in the eurozone and the United States.

UK annual inflation stood at 10.1 percent in March, the highest level in the Group of Seven richest nations.

Sunak and the BoE blame the high level in part on rises to pay and have urged employers to show restraint.

BoE chief economist Huw Pill recently stated that Britons need “to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices via higher wages”.

AFP

Related Topics:Bank of England Interest Rate

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NAICOM Hands Over African Alliance Insurance to New Board, Management team

The Commissioner charged the newly constituted Board OF Directors to work collaboratively with shareholders while upholding the highest standards of corporate governance, regulatory compliance, and operational transparency.

Published

11 hours ago

June 16, 2026

OCHEFA

29 Views

The National Insurance Commission (NAICOM), has handed over the operations of African Alliance Insurance plc to a new Board of Directors and a new management team.

The new board is chaired by Rear Admiral Anthony Odogba Isa while the management team is led by Mr. Abayomi Olakunle Ogunkeye as the Managing Director.

The new board was nominated by the company’s shareholders, following the successful conclusion of a regulatory intervention commenced by NAICOM in the company in October 2024.

The handover marks a significant milestone in restoring the company’s financial stability, safeguarding the interests of policyholders and annuitants, and repositioning the organisation for sustainable growth.

NAICOM had in October 2024, intervened in African Alliance Insurance after it faced severe liquidity challenges, a backlog of unsettled claims particularly annuity obligations regulatory breaches, and reputational damage that threatened its continued existence and undermined policyholders confidence.

To address these challenges, NAICOM appointed an Interim Management Board (IMB) and an interim management team, with a clear mandate to stabilise the company, unlock liquidity, settle outstanding liabilities, conduct forensic and actuarial reviews, and restore stakeholder confidence.

Speaking during the handover ceremony, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, highlighted the transformative impact of the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025.

He noted that the legislation strengthens regulatory oversight, enhances public confidence, and supports deeper insurance penetration in Nigeria.

According to him, a major milestone under the Act is the establishment of the Insurance Policyholders Protection Fund (IPPF) a landmark mechanism designed to provide financial relief to policyholders in the event of insurer distress, insolvency, or liquidation.

The Fund represents a significant advance in consumer protection and aligns Nigeria’s regulatory framework with global best practices.

He emphasised the importance of sustaining policyholder confidence through prompt claims settlement, sound solvency management, and prudent business practices.

He further directed the board to strengthen corporate governance structures, restructure portfolios, update and reconcile policyholder records as well as reinforce transparency and accountability.

Source : ThisDay

Business

Naira Exchange Rates To Foreign currencies Tuesday June 16

CBN Official Rates
US DOLLAR (USD) ₦1,356.27
GREAT BRITISH POUND (GBP) ₦1,808.86

Published

12 hours ago

June 16, 2026

OCHEFA

24 Views

Official CBN Exchange Rates

US DOLLAR (USD) ₦1,356.27

GREAT BRITISH POUND (GBP) ₦1,808.86

EURO (EUR) ₦1,575. 85

SWISS FRANC (CHF) ₦1,790. 46

JAPANESE YEN (JPN) ₦8.47

CHINESE YUAN (CNY) ₦200.72

WEST AFRICAN CFA (XOF) ₦2.40

WEST AFRICAN UNIT ACCOUNT (WAUA) ₦1,861. 95

SAUDI RIYAL (SAR) ₦361.42

SOUTH AFRICAN RAND (ZAR) ₦83.90

BLACK MARKET RATES

US DOLLAR (USD) Buy ₦1,393 Sell ₦1,400

GREAT BRITISH POUND (GBP) Buy ₦1,845 Sell: ₦1,865

EURO (EUR) Buy ₦1,185 Sell ₦1, 605

CANADIAN DOLLAR (CAD) Buy ₦1,030 Sell ₦1,100

SOUTH AFRICAN RAND (ZAR) Buy ₦75 Sell ₦90

UAE DIRHAM Buy ₦350 Sell ₦370

CHINESE YUAN Buy ₦180 Sell ₦200

GHANA CEDI (GHS) Buy ₦95 Sell ₦110

WEST AFRICAN CFA Buy ₦2, 380 Sell ₦2, 460

CENTRAL AFRICAN CFA Buy ₦2, 220 Sell ₦22,300

AUSTRALIAN DOLLAR Buy ₦800 Sell ₦900

Business

Dangote unveils plans for largest free trade zone in Ondo

On his part, Ondo State Governor, Lucky Aiyedatiwa, views development as a major milestone in Ondo State’s industrialisation agenda.. .

Published

16 hours ago

June 16, 2026

OCHEFA

32 Views

President of Dangote Group, Aliko Dangote, has disclosed plans to develop a large-scale industrial and free trade zone at Olokola in Ondo State.

According to him, the proposed Olokola project would go beyond a conventional free trade zone, emphasising that the move, as a power-driven investment hub, will be designed to attract manufacturers.

Dangote disclosed this during a courtesy visit to Governor Lucky Aiyedatiwa in his office in Akure, yesterday.

Dangote stressed that the free trade zone would be equipped with power, water and logistics infrastructure to enable investors to operate without delays associated with basic utilities.

The initiative, according to Dangote, will address Nigeria’s long-standing power deficit, which he described as the country’s biggest industrial constraint for over 30 years, noting that most manufacturers currently rely on self-generated electricity.

He said that the absence of reliable power had slowed industrial expansion across the country, adding that the new model would integrate a dedicated energy supply into the industrial zone.

Dangote said the group had previously attempted to develop investments in Olokola but was constrained by operational challenges at the time, leading to the concentration of projects in Lagos.

He said the renewed engagement reflects improved conditions and stronger collaboration prospects with the state government.

On his part, Ondo State Governor, Lucky Aiyedatiwa, views development as a major milestone in Ondo State’s industrialisation agenda, stating that the project aligns with his administration’s efforts to position the state as a leading industrial destination in South-West, noting its strategic location along the Lagos-Calabar Coastal Highway corridor.

Aiyedatiwa also highlighted the state’s deep seaport licence, describing it as a key logistics advantage capable of handling large vessels without transshipment.

He disclosed that limestone deposits in the state had been tested and found suitable for industrial use, signalling potential for cement production expansion.

Source: The Guardian