BoE accelerates tightening as inflation expected to hit 13%

“Enormous” external shocks to blame for large changes in forecasts, officials say

Bank of England
Photo: Juno Snowdon Photography

The Bank of England speeded up its monetary tightening today (August 4), as it predicted sharply higher UK inflation by the end of the year.

The BoE’s policy-makers voted 8–1 to increase the policy rate by 50 basis points, to 1.75%. Previously, members of the monetary policy committee had voted for hikes of 25bp or less.

The BoE also revised its headline forecast for inflation in the fourth quarter of 2022 to 13.1%, three percentage points higher than the May forecast.

The vast majority of

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