Bank Rate increased to 3.00% - November 2022

Bank Rate increased to 3.00% - November 2022

From bankofengland.co.uk

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 November 2022, the MPC voted by a majority of 7-2 to increase Bank Rate by 0.75 percentage points, to 3%. One member preferred to increase Bank Rate by 0.5 percentage points, to 2.75%, and one member preferred to increase Bank Rate by 0.25 percentage points, to 2.5%. As set out in the accompanying November Monetary Policy Report, the MPC’s updated projections for activity and inflation describe a very challenging outlook ... (full story)

Added at 7:05am

BOE: PEAK INTEREST RATE LIKELY LOWER THAN IMPLIED BY MARKETS
— 4XInsight (@4xInsight) November 3, 2022

Added at 7:05am

BOE: THE MAJORITY OF MPS BELIEVE A 75 BASIS POINT INCREASE WOULD REDUCE THE RISK OF FUTURE, COSTLY TIGHTENING.
— Breaking Market News (@financialjuice) November 3, 2022

Added at 7:05am

BOE SEES TWO-YEAR RECESSION IF RATES FOLLOW MARKET CURVE
— 4XInsight (@4xInsight) November 3, 2022

Added at 7:06am

BoE: Majority of MPC Favoured 75 BP Rate Hike Because of Domestic Price Pressure, Fiscal Policy

BoE: Majority of MPC Say 75 BP Increase Would Reduce Risk of Extended, Costly Tightening Later
— *seven (@sevenloI) November 3, 2022

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DaJoWaBa

Nov 3, 2022 7:26am

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Quoting Ftmofx

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It should be bought. 75 bps interest rate hike is enough to control inflation. I think enough for 2% inflation target tightening.

Ignored

You could be right but I'm not sure that the global market will be convinced by that. To make a real difference for GBP I suspect the rate hike probably needed to be larger then the FED's to 'show real intent' and really the nominal interest rate needs to be higher than the FED's anyway.
There is no sign yet of any monthly inflation figure in the UK being less than its preceding month so inflation is still increasing with no specific notion of exactly when that might change, even though the UK is clearly in recession and wages decreasing in real terms. So long as job vacancies continue to be larger than the unemployment rate, I guess that is dampening the real wages decline component.