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Bank Rate increased to 5.25% - August 2023
The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 2 August 2023, the MPC voted by a majority of 6–3 to increase Bank Rate by 0.25 percentage points, to 5.25%. Two members preferred to increase Bank Rate by 0.5 percentage points, to 5.5%, and one member preferred to maintain Bank Rate at 5%. The Committee’s updated projections for activity and inflation are set out in the accompanying August Monetary Policy Report. These are conditioned on a market-implied path for Bank ... (full story)
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Bank of England raises UK interest rate to fresh 15-year high of 5.25%
The Bank of England has raised interest rates by a quarter of a point to 5.25% to a fresh 15-year high as it battles to bring rampant UK inflation back down to its 2% target. In a move that matched City analysts’ forecasts, the central bank agreed the rise – its 14th increase in a row – to tackle a cost of living crisis that has pushed many families into financial hardship. Some economists had feared the Bank would increase the likelihood of a recession by raising rates by 0.5 percentage points, but policymakers opted for a more modest increase after a drop in the UK annual inflation rate. The consumer prices ... (full story)