BoE raises rates 25bp and ditches UK recession forecast
Central bank predicts inflation will stay higher for longer after MPC splits 7–2 on policy hike
The UK policy rate hit its highest level since 2008 today (May 5), as the Bank of England added a further 25 basis points to its main rate.
Monetary policy committee members voted 7–2 to raise the rate to 4.5%, a level last seen in October 2008. “We have to stay the course to make sure inflation falls all the way back to the 2% target,” governor Andrew Bailey said during a press conference.
The central bank raised its forecast for growth substantially, reversing its prediction that the UK was
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