Markets have forecast that the Bank of England is approaching the end of its hiking cycle after opting for a smaller rates increase today (3 August), but industry experts believe the central bank is walking a tightrope as recession looms.
The BoE raised interest rates by 25bps to 5.25%, the highest level since February 2008. It also marked the 14th consecutive hike since the bank started raising rates in December 2021. Bank of England hikes rates by 25bps to 5.25% The Monetary Policy Committee was split on its decision, with six members voting to hike rates by 25bps, two voting for a 50bps hike and one voting for no change. This contrasts with the recent unanimous policy decisions at the European Central Bank and the Federal Reserve. While many economists had speculated that a 50bps increase was likely, the smaller ...
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