BoE Hike 25 bps 7-2 vote split
Current Bank Rate 4.25%
BoE policymakers Tenreyro and Dhingra vote to keep rates on hold.
BoE Statement:
Q2 CPI likely to be lower than forecast in February, due to longer energy price cap and lower wholesale prices.
Further tightening of monetary policy would be necessary "if there were to be signs of more persistent pressures."
BoE Decision Maker Panel: Businesses see year-ahead inflation of 5.6% in 3 months to February vs 6.2% in 3 months to November
Reuters on the move -
The Bank of England
Bank of England
The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy
The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy
Read this Term raised interest rates by a further quarter of a percentage point on Thursday and said it expects the surge in British inflation
Inflation
Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m
Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m
Read this Term to cool faster than before, despite a surprise jump in price growth announced on Wednesday.
Sounding more upbeat about the outlook for the country's slow pace of economic growth, the BoE's nine rate-setters voted 7-2 in favour of a 25 basis-point increase in Bank Rate to 4.25%.
That was its 11th consecutive increase in borrowing costs which began in December 2021, although it was the smallest rise since June last year.
Monetary Policy Committee members Swati Dhingra and Silvana Tenreyro voted to keep rates on hold while Catherine Mann, who has been the committee's strongest advocate for raising rates in bigger steps, backed the relatively small 25 basis-point increase.
The BoE - which is trying to reconcile a weak economic outlook and anxieties about global banks with stubbornly high inflation - kept unchanged its message that its MPC saw less urgency about maintaining its fast run of rate hikes.
