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Bank of England set for biggest rate hike in 33 years

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UK inflation raises to 41-year peak

The Bank of England is widely expected to hike its key interest rate on Thursday by the biggest amount since 1989 as it bids to cool sky-high British inflation.

Following a regular meeting, the BoE is expected to lift borrowing costs by 0.75 percentage points to three percent, according to market consensus, which would be the highest level since the 2008 global financial crisis.

Some analysts, however, are predicting a rise of one percentage point, also a 33-year high.

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The move would mirror aggressive rate-tightening by central banks worldwide as economies battle the highest prices in decades.

Ahead of the UK decision, the London stock market opened sharply lower after the US Federal Reserve sprang a fourth consecutive hike of 0.75 percentage points — and its boss Jerome Powell suggested they would go higher than expected.

– ‘Unenviable job’ –
The BoE rate call, due at 1200 GMT, is set to worsen a cost-of-living crisis for millions of Britons as hikes by central banks see retail lenders push up interest rates on their own loans.

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“The Bank of England will likely join the Fed in raising rates by 75 basis points,” said Oanda analyst Craig Erlam.

“The central bank has had the unenviable job of fighting soaring inflation amid enormous economic and political uncertainty.”

Repayments on UK mortgages have surged in recent weeks also after the debt-fuelled budget of previous British prime minister Liz Truss spooked markets, forcing her to resign and triggering emergency buying of UK government bonds by the BoE.

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Her successor Rishi Sunak has attempted to bring calm to markets by hinting at tax rises in a fresh budget on November 17, even if such a move further harms Britain’s economy.

“I think everyone knows we do face a challenging economic outlook and difficult decisions will need to be made,” Sunak, a former UK finance minister, told parliament on Wednesday.

British annual inflation stands above 10 percent, the highest level in 40 years, on soaring food prices and energy bills.

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– Inflation update –
The BoE will also give its latest inflation and growth forecasts, with analysts indicating that the UK economy may already be in recession.

“The Bank of England is expected to hike its interest rate by no more than 75 basis points, on conviction that the Sunak government would opt for some fiscal austerity, and nothing too crazy to wreak havoc, again,” forecast Swissquote analyst Ipek Ozkardeskaya.

As the Covid-19 pandemic began in early 2020, the BoE slashed its key interest rate to a record-low 0.1 percent and also pumped massive sums of new cash into the economy.

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The Bank of England started raising rates last December and another hike Thursday would be the eighth increase in a row.

Ruth Gregory, senior UK economist at Capital Economics, predicts that the BoE will raise its interest rate by one percentage point on Thursday and by the same amount in December.

“If we are right that domestic inflation will be sticky, it may mean that the Bank of England ultimately has to act more aggressively further ahead,” she added.

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Benue IDPs block highway, demand return to ancestral homes

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Vehicular movement along the Yelwata axis of the Benue–Nasarawa highway was brought to a standstill on Wednesday as Internally Displaced Persons, IDPs, staged a protest, demanding immediate return to their ancestral homes.

The protesters, believed to be victims of persistent attacks by suspected herdsmen, blocked both lanes of the busy highway for several hours, chanting “We want to go back home”.

The protest caused disruption, leaving hundreds of motorists and passengers stranded.

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Eyewitnesses said the displaced persons, many of whom have spent years in overcrowded IDP camps, are expressing deep frustration over the government’s delay in restoring security to their communities.

“We have suffered enough. We want to return to our homes and farms,” one of the protesters told reporters at the scene.

Security personnel were reportedly deployed to monitor the situation and prevent any escalation, though tensions remained high as of press time.

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Efforts to reach the Benue State Emergency Management Agency, SEMA, and other relevant authorities for comment were unsuccessful.

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NNPCL reveals decision not to sell Port Harcourt refinery

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The Nigerian National Petroleum Company Limited, NNPCL has officially decided not to sell the Port Harcourt Refining Company.

NNPCL has, instead said it is committed to conducting an extensive rehabilitation of the facility and ensuring its continued operation.

During a company-wide town hall meeting held at the NNPC Towers in Abuja, Bayo Ojulari, the Group Chief Executive Officer of NNPC Ltd, announced the decision regarding the future of the nation’s most significant state-owned refining asset, putting an end to weeks of speculation.

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A statement by NNPCL reads, “The Nigerian National Petroleum Company Limited has officially ruled out the sale of the Port Harcourt Refining Company, reaffirming its commitment to completing high-grade rehabilitation and retention of the plant.

“The ongoing review indicates that the earlier decision to operate the Port Harcourt refinery, before full completion of its rehabilitation, was ill-informed and subcommercial.

”Although progress is being made on all three, the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery.

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”Thus, selling is highly unlikely as it would lead to further value erosion.”

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Tinubu appoints Olumode Adeyemi as Federal Fire Service boss

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President Bola Tinubu has approved the appointment of Adeyemi Olumode, as the new Federal Fire Service, FFS, Controller-General.

The appointment was announced on Wednesday on behalf of the Federal Government by retired Maj.-Gen Abdulmalik Jubril, Secretary of the Civil, Defence, Correctional, Fire and Immigration Services Board, CDCFIB.

Jubril said the appointment followed the retirement of the current Controller-General, Abdulganiyu Jaji, on August 13.

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Jaji is retiring upon attaining the age of 60 by August 13.

Jibril further disclosed said that Adeyemi Olumode is qualified for the position, having attended and passed all mandatory in-service training, Command courses as well as other courses within and outside the country.

“He brings a wealth of experience to his new role, having transferred his service from the FCT Fire Service to the Federal Fire Service and grown to the rank of DCG in the Human Resource Directorate of the Service Headquarters.

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“He has served in various capacities and is equally a member/fellow of the following professional associations including Association of National Accountants of Nigeria, ANAN, Institute of Corporate Administration of Nigeria, Institute of Public Administration of Nigeria and Chartered Institute of Treasury Management of Nigeria.”

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