Interest rates hiked 50 basis points to 13-year record high of 5%

'Clients have been living with high inflation and sustained rate rises'

clock • 3 min read

The Bank of England's (BoE) monetary policy committee has hiked interest rates by 50 basis points (bps) from 4.5% to 5% by a majority vote of seven to two.

The move today (22 June) is the thirteenth consecutive interest hike from the central bank, putting rates at the highest levels since 2008. Markets had factored in another rate hike from the BoE, but they were split on whether the central bank would increase rates by 25bps or 50bps, considering the stickiness of inflation which, according to Consumer Prices Index data yesterday remained stagnant in May at 8.7%. In its report, the committee said its remit is "clear that the inflation target [of 2%] applies at all times, reflecting the primacy of price stability in the UK monetary polic...

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