Bank of England hikes rates by 50 basis points

Split decision

The Bank of England has raised interest rates by 50 basis points to 3.5%, in a split decision from the central bank's Monetary Policy Committee.

The hike, announced today (15 December), was generally in line with expectations and came following news last week that UK's inflation rate had dropped to 10.7% in November. Six MPC members voted to hike rates by 0.5%, while two members, Swati Dhingra and Silvana Tenreyro, voted to maintain rates at 3%, and one, Catherine Mann, voted to increase rates by 0.75%. GDP projections were slightly stronger than at the MPC's previous meeting in November, with Q4 2022 GDP now expected to decline 0.1%, compared to the previously expected 0.3% decline. Fed raises rates by 50 basis points whil...