Bank of England interest rate decision a 'panic move' overshadowed by Covid uncertainty

0.25% rate hike a “watershed” moment

clock • 4 min read
Bank of England governor Andrew Bailey

Bank of England governor Andrew Bailey

The Bank of England’s decision to increase interest rates to 0.25% on Thursday (16 December) has been criticised as a “panic move” to prevent the UK economy drifting into “more dangerous waters” as Covid cases soar, while the threat of lockdowns and further pandemic uncertainty are set to weigh on growth forecasts going forward.

Defying expectations again, the bank said current economic conditions met the criteria to increase UK interest rates, having recently been accused by the International Monetary Fund of "inaction" over...

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