Bank of England delivers 'relatively dovish message' alongside rate hike

Bank expected to 'proceed with caution'

The Bank of England raised interest rates by 0.25% today, with analysts noting the bank’s dovish language, implying a cautious approach going forward.

Caspar Rock, CIO at Cazenove Capital, said that "amid inflation forecasts of 7.5% by spring, it comes with little surprise" that the bank issued the hike. However, he said that "looking forward, the prospects for further rate rises are likely to depend on the extent to which oil price rises feed through to other areas of the economy, particularly wages." Rob Clarry, investment strategist at Tilney Smith & Williamson, said that the bank "faces a difficult balancing act" between growth and inflation but argued that increasing labour market tightening and elevated energy prices pushed th...