Bank of England raises interest rates to 0.5%

Rates now 0.5%

Elliot Gulliver-Needham
clock • 1 min read
The Bank of England
Image:

The Bank of England

The Bank of England has raised interest rates from 0.25% to 0.5% in its first back-to-back hike since 2004.

The bank's Monetary Policy Committee voted in a majority of five to four to raise rates to 0.5%, with the members that voted against the hike actually preferring to increase rates to 0.75%, suggesting future hikes were imminent. The MPC wrote that "some further modest tightening in monetary policy is likely to be appropriate in the coming months". The hike had been expected by analysts due to the UK's high inflation, which the bank said today is expected to climb to 6% in February and March before peaking at 7.25% in April, 2% higher than the peak that had been predicted in November. ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

There are concerns that the windfall tax will discourage investment into energy in the UK
UK

No energy company 'in their right mind' would set up in the UK now

Windfall tax may dampen energy sentiment

clock 01 July 2022 • 4 min read
Small-caps look to “boost their future cash surplus” during recession.
UK

Miton's Gervais Williams: Recession may favour 'immature businesses'

FTSE Small Cap down 15% year-to-date

clock 29 June 2022 • 2 min read
The fall in sales volumes over the month was because of food stores, which fell by 1.6%.
UK

UK retail sales slip in May as consumer confidence falls to lowest on record

Shoppers cut back on food spending

clock 24 June 2022 • 2 min read
Trustpilot