Bank of England meets expectations with 0.5 percentage point hike

UK domestic inflationary pressures had been 'firmer than expected'

Elliot Gulliver-Needham
clock • 5 min read

The Bank of England has met market expectations today (2 February) after hiking interest rates by 50 basis points to 4%.

With a seven/two split, the bank's Monetary Policy Committee took interest rates to a new 14-year high as it attempted to tackle persistent inflation. UK inflation has remained high despite slowly declining, sitting at 10.5% in December, even as the central bank makes its tenth consecutive rate hike. The MPC warned that UK domestic inflationary pressures had been "firmer than expected," noting that private sector pay growth and services inflation had been "notably higher than forecast" in the bank's November prediction. It added that inflation is expected to fall to about 4% by the...

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 Economics / Markets

UK election high on clients' radars as impact on finances is flagged

UK election high on clients' radars as impact on finances is flagged

Majority of advisers have been asked by clients about the financial impact

Isabel Baxter
clock 13 June 2024 • 1 min read
Inflation and financial planning — focusing on the bigger picture

Inflation and financial planning — focusing on the bigger picture

Well-informed advisers can better guide their clients through turbulent times

Adam Leci
clock 07 June 2024 • 5 min read
More than half of IFAs feel negative about a potential Labour govt

More than half of IFAs feel negative about a potential Labour govt

Advisers favour Conservatives when it comes to their clients and business

Isabel Baxter
clock 09 May 2024 • 2 min read