Bank of England increases rates by 50bps to 5%

‘Inflation target applies at all times’

The Bank of England has hiked interest rates by 50 basis points to 5%.

The BoE's Monetary Policy Committee hiked rates via a majority vote of seven to two, with two members voting to hold the central bank rate at 4.5%. This was the thirteenth consecutive interest hike from the central bank, putting rates at the highest levels since 2008. Bank of England to review inflation forecast models following Treasury concerns Markets had factored in another rate hike from the BoE, but they were split on whether the central bank would increase rates by 25bps or 50bps, considering the stickiness of inflation which, according to CPI data yesterday remained stagnan...