Bank of England MPS hikes interest rates by 50 basis points

Comes after news of the inflation rate drop for November

Elliot Gulliver-Needham
clock • 1 min read

The Bank of England (BoE) has raised interest rates by 50 basis points to 3.5%, in a split decision from the central bank's monetary policy committee (MPC).

The hike, announced today (15 December), follows the news the UK's inflation rate dropped to 10.7% in November. Six MPC members voted to hike rates by 0.5%, while two members, Swati Dhingra and Silvana Tenreyro, voted to maintain rates at 3%, and one, Catherine Mann, voted to increase rates by 0.75%. GDP projections were slightly stronger than at the MPC's previous meeting in November, with Q4 2022 GDP now expected to decline 0.1%, compared to the previously expected 0.3% decline. Meanwhile, the bank predicts that inflation will continue to "fall gradually" over the first quarter o...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Markets

Market Movers: Japan is 'the playbook not the exception'

Market Movers: Japan is 'the playbook not the exception'

Japanese-style low growth expected to characterise other markets

Professional Adviser
clock 15 May 2024 • 1 min read
Market impact concerns ahead of US and UK elections divide industry

Market impact concerns ahead of US and UK elections divide industry

‘We need someone with a bit of something about them’

Isabel Baxter
clock 02 February 2024 • 3 min read
0.3% GDP growth fails to alleviate 'precarious' economic situation

0.3% GDP growth fails to alleviate 'precarious' economic situation

'An appropriately diversified portfolio is the best approach'

Hope Coumbe
clock 12 January 2024 • 2 min read