Editor's letter: Difficult times for central bank

Cautious note

Lauren Mason
clock • 3 min read
Lauren Mason, Investment Week editor

Lauren Mason, Investment Week editor

Last Thursday (17 March), the Bank of England decided to hike interest rates by 25 basis points to 0.75% at the latest Monetary Policy Committee meeting.

The decision, which was reached via an eight-to-one majority (with one committee member proposing to hold rates) was largely expected,   given the UK's ongoing battle against inflation. Markets had already priced in six 0.25% rate hikes by the end of the year. Bank of England delivers 'relatively dovish message' alongside rate hike What may have come as more of a surprise, however, is the more cautious note struck by the central bank, with hawkish rhetoric replaced by a less gung-ho approach to policy over the medium term. Indeed, this is reflected in the fact that one member voted fo...

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