Bank of England meets expectations with 25bps hike

In line with Fed and ECB

The Bank of England has hiked interest rates by 25 basis points, in line with expectations from the market as the bank continues to struggle to lower inflation.

The bank's Monetary Policy Committee hiked interest rates from 4.25% to 4.5%, by a vote of seven to two, with two members voting to keep interest rates unchanged. In the MPC's report, it said that economic forecasts had improved in recent months, with UK-weighted world GDP now expected to grow "at a moderate pace" over the next few years. However, the labour market still remains tight, with unemployment projected to remain below 4% until the end of next year, the bank said. Markets certain on Fed rate cut following 4.9% inflation in April Inflation in the UK has remained stubb...