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BoE reduces tightening pace and commits to maintaining a restrictive policy Investment Insights • MFN

BoE reduces tightening pace and commits to maintaining a restrictive policy

On 3 August the Bank of England’s (BoE) Monetary Policy Committee (MPC) voted to hike interest rates by 25 basis points to 5.25%. With annual inflation at 7.9%, the central bank is expected to raise rates at least twice more to encourage inflation to return to the 2% target. In this Macro Flash Note, economists Joaquin Thul and Sam Jochim look at the outlook for UK inflation and the implications for the BoE’s next steps.

Joaquin Thul

6 min read
Bank of England hikes rates to deal with persistent inflation Investment Insights • MFN

Bank of England hikes rates to deal with persistent inflation

Bank of England At its latest Monetary Policy Committee (MPC) meeting, the Bank of England (BoE) raised interest rates by 25 basis points to 4.25%, as anticipated by markets. This represents a reduction in the pace of tightening of monetary policy, after two consecutive 50bps hikes, and the 11th hike since December 2021. In the statement issued after the meeting, the MPC reaffirmed the stability of the UK banking system and reiterated its commitment to bringing inflation down to the 2% target.

Joaquin Thul

3 min read

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