'5% is not out of the question' as BoE makes 12th consecutive rate hike

Rates up to 4.5%

The Bank of England raised interest rates from 4.25% to 4.5% today (11 May), as analysts predict further hikes on the horizon.

Janet Mui, head of market analysis at RBC Brewin Dolphin, said there had been "little surprise" at the hike, which had been widely predicted by markets. She noted that forward guidance remained unchanged, meaning the central bank was not signalling a pause "as some may have hoped". "The BoE has little choice but to leave the door open for further rate increases given that inflation is double that of the US and above the pace in the Eurozone," Mui added. Bank of England projects £100bn payment from Treasury to cover QE losses Neil Birrell, CIO of Premier Miton Investors, agre...