BoE hints at 'earlier' rate hikes as MPC adopts more hawkish stance

Held rates at 0.5%

The Bank of England (BoE) has held interest rates at 0.5% but adopted a more hawkish stance by suggesting a rate hike would be needed "somewhat earlier" and to a "somewhat greater extent" than anticipated.

The Monetary Policy Committee (MPC), which voted unanimously to maintain rates in the February meeting, said an interest rate rise would be needed "somewhat earlier" in order to return inflation to its 2% target. The MPC forecasted CPI, which is currently at 3%, to remain above its target despite predicting a fall back over the coming months. The MPC said: "The committee judges that, were the economy to evolve broadly in line with the February Inflation Report projections, monetary policy would need to be tightened somewhat earlier and by a somewhat greater extent over the forecast pe...