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

  • 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.



Already a Professional Adviser member?


More on Economics / Markets

Increases were largely attributed to rises in fuel, gas and electricity prices as well as food and non-alcoholic beverages

UK inflation unexpectedly jumps to 10.4% in February

All eyes on Bank of England interest rate decision

clock 22 March 2023 • 3 min read
“Banks are often seen as oiling the wheels of the economy, so that any shocks to the established system can result in intense scrutiny on the financial strength of banks in general.”

Contagion is 'spreading' from banking to real economy

Some of the most affected stocks were non-financials

clock 21 March 2023 • 5 min read
Market turmoil prompted an unscheduled meeting of the ECB Supervisory Board

Bank shares sell-off sparks unplanned ECB board meeting

Meeting prompted by tumultuous week for banks across the world

clock 17 March 2023 • 1 min read