Editor's letter: Difficult times for central bank

Cautious note

Last Thursday (17 March), the Bank of England decided to hike interest rates by 25 basis points to 0.75% at the latest Monetary Policy Committee meeting.

The decision, which was reached via an eight-to-one majority (with one committee member proposing to hold rates) was largely expected,   given the UK's ongoing battle against inflation. Markets had already priced in six 0.25% rate hikes by the end of the year. Bank of England delivers 'relatively dovish message' alongside rate hike What may have come as more of a surprise, however, is the more cautious note struck by the central bank, with hawkish rhetoric replaced by a less gung-ho approach to policy over the medium term. Indeed, this is reflected in the fact that one member voted fo...