Bank of England hikes interest rates by 25bps

Inflation remains high

The Bank of England has hiked interest rates by 25 basis points, as the turmoil in the banking sector clashes with the central bank's desire to bring down inflation.

In a 7-2 split, the central bank chose to increase interest rates to 4.25%, with two members voting to maintain rates at 4%. The bank's Monetary Policy Committee referenced the "large and volatile moves in global financial markets" in its report, and said that its Financial Policy Committee had judged that the UK banking system "remains resilient" due to its "robust capital and strong liquidity positions". It added that it was now forecasting that GDP growth predictions have moved to be slightly positive in the second quarter of this year, from an expectation of a 0.4% decrease as pre...