- 25 bps hike was widely anticipated
- Rate-setters stress that next move will be data dependent
The Bank of England’s monetary policy committee voted to increase interest rates by 25 basis points on Thursday afternoon. The move marked the central bank’s twelfth consecutive hike, and takes the UK bank rate to 4.5 per cent – the highest level since October 2008.
Though the move was widely anticipated by markets and economists, the Bank’s next step is less clear. Though seven members of the rate-setting committee voted for the 25 basis point hike, two voted for a pause.