The Bank of England's Monetary Policy Committee has unanimously voted to increase interest rates by 25 basis points to 0.75%, the highest level in almost a decade.
Despite the weaker-than-anticipated CPI inflation at 2.4% in June, the MPC minutes said inflation would remain above target for the forecast period. The MPC added there was a "very limited degree" of slack in the UK economy with unemployment low. The minutes said: "In the MPC's central projection, therefore, a small margin of excess demand emerges by late 2019 and builds thereafter, feeding through into higher growth in domestic costs than has been seen over recent years. "The MPC continues to recognise that the economic outlook could be influenced significantly by the response of ...
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